CapitaLand Integrated Commercial Trust - Annual Report 2021

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS Opinion We have audited the financial statements of CapitaLand Integrated Commercial Trust (the “Trust”) and its subsidiaries (the “Group”), which comprise the Statements of Financial Position of the Group and the Trust and the Portfolio Statement of the Group as at 31 December 2021, the Statement of Total Return, Distribution Statement, and Statement of Cash Flows of the Group and the Statements of Movements in Unitholders’ Funds of the Group and the Trust for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, as set out on pages 218 to 317. In our opinion, the accompanying consolidated financial statements of the Group and the financial statements of the Trust present fairly, in all material respects, the financial position of the Group and of the Trust and the portfolio holdings of the Group as at 31 December 2021, the total return, distributable income, and cash flows of the Group and the movements in Unitholders’ funds of the Group and of the Trust for the year ended on that date in accordance with the recommendations of Statement of Recommended Accounting Practice 7 Reporting Framework for Investment Funds (“RAP 7”) issued by the Institute of Singapore Chartered Accountants. Basis for opinion We conducted our audit in accordance with Singapore Standards on Auditing (“SSAs”). Our responsibilities under those standards are further described in the ‘ Auditors’ responsibilities for the audit of the financial statements’ section of our report. We are independent of the Group in accordance with the Accounting and Corporate Regulatory Authority Code of Professional Conduct and Ethics for Public Accountants and Accounting Entities (“ACRA Code”) together with the ethical requirements that are relevant to our audit of the financial statements in Singapore, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ACRA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Valuation of investment properties (Refer to Note 5 to the financial statements) Risk : The Group’s and Trust’s investment portfolios comprise a number of investment properties located in Singapore and Germany. Investment properties represent the largest asset on the Statements of Financial Position. In accordance with the accounting policy adopted by the Group, investment properties are stated at fair values based on independent external valuations. The valuation of investment properties involves significant judgement and estimation uncertainty. Judgement is required in determining the valuation methodologies applicable as well as in estimating the appropriate assumptions to be applied. Independent Auditors’ Report UNITHOLDERS OF CAPITALAND INTEGRATED COMMERCIAL TRUST (CONSTITUTED IN THE REPUBLIC OF SINGAPORE PURSUANT TO A TRUST DEED DATED 29 OCTOBER 2001 (AS AMENDED)) CapitaLand Integrated Commercial Trust 214