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CapitaMall Trust Annual Report 2013 164 Clarity
Notes to the
Financial Statements
2 BASIS OF PREPARATION (continued)
2.5 Changes in accounting policies
RAP 7 (2012)
From 1 January 2013, the Group and the Trust have adopted the revised RAP 7 issued by the Institute of
Singapore Chartered Accountants (ISCA) in June 2012.
The adoption of RAP 7 (2012) has resulted in additional disclosures in the financial statements of the
Group and the Trust for the current and comparative years. These have been included in the Statement of
Total Return and notes to the financial statements.
The adoption of RAP 7 (2012) affects only the disclosures made in the financial statements. There is no
financial effect on the financial position, total return or distributable income of the Group and the Trust
for the current and previous financial years. Accordingly, the adoption of RAP 7 (2012) has no impact on
earnings and distributions per unit.
Fair value measurement
FRS 113 Fair value measurement establishes a single framework for measuring fair value and making
disclosures about fair value measurements, when such measurements are required or permitted by other
FRSs. In particular, it unifies the definition of fair value as the price at which an orderly transaction to sell an
asset or to transfer a liability would take place between market participants at the measurement date. It also
replaces and expands the disclosure requirements about fair value measurements in other FRSs, including
FRS 107 Financial Instruments: Disclosures.
From 1 January 2013, in accordance with the transitional provisions of FRS 113, the Group has applied the
new fair value measurement guidance prospectively, and has not provided any comparative information for
new disclosures. Notwithstanding the above, the change had no significant impact on the measurements of
the Group’s assets and liabilities. The additional disclosures necessary as a result of the introduction of this
standard has been included in Note 31.
3 SIGNIFICANT ACCOUNTING POLICIES
The accounting policies set out below have been applied consistently to all periods presented in these financial
statements, and have been applied consistently by the Group, except as explained in Note 2.5, which addresses
changes in accounting policies.
3.1 Consolidation
Subsidiaries
Subsidiaries are entities controlled by the Group. Control exists when the Group has the power to govern the
financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control,
potential voting rights that presently are exercisable are taken into account. The financial statements of
subsidiaries are included in the consolidated financial statements from the date that control commences
until the date that control ceases.