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Financial
Statements
167
3 SIGNIFICANT ACCOUNTING POLICIES (continued)
3.5 Development property for sale
Development property for sale is stated at the lower of cost and estimated net realisable value.
Net realisable value represents the estimated selling price less costs to be incurred in selling the property.
The cost of development property for sale comprises specifically identified costs, including acquisition
costs, development expenditure, borrowing costs and other related expenditure. Borrowing costs payable
on loans funding a development property are also capitalised, on a specific identification basis, as part of
the cost of the development property until the completion of development.
3.6 Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currencies of the Group at
the exchange rate at the date of the transaction. Monetary assets and liabilities denominated in foreign
currencies at the end of the reporting date are retranslated to the functional currency at the exchange rate
at that date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair
value are retranslated to the functional currency at the exchange rate at the date on which the fair value was
determined.
Foreign currency differences arising on retranslation are recognised in Statement of Total Return, except for
the following differences which are recognised in Unitholders’ funds, arising on the retranslation of:
š WlW_bWXb[#\eh#iWb[ [gk_jo _dijhkc[dji [nY[fj ed _cfW_hc[dj _d m^_Y^ YWi[ \eh[_]d Ykhh[dYo
differences that have been recognised in Unitholders’ funds are reclassified to Statement of
Total Return);
š W Ȉ_dWdY_Wb b_WX_b_jo Z[i_]dWj[Z Wi W ^[Z][ e\ j^[ d[j _dl[ijc[dj _d W \eh[_]d ef[hWj_ed je j^[ [nj[dj j^Wj
the hedge is effective; or
š gkWb_\o_d] YWi^ Ȉbem ^[Z][i je j^[ [nj[dj j^[ ^[Z][ _i [\\[Yj_l[$
3.7 Financial instruments
Non-derivative financial assets
The Group initially recognises loans and receivables on the date that they are originated. All other
financial assets (including assets designated at fair value through profit or loss) are recognised initially on
the trade date at which the Group becomes a party to the contractual provisions of the instrument.
The Group derecognises a financial asset when the contractual rights to the cash flows from the asset
expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction
in which substantially all the risks and rewards of ownership of the financial asset are transferred.
Any interest in transferred financial assets that is created or retained by the Group is recognised as a separate
asset or liability.