2 BASIS OF PREPARATION
2.1 Statement of compliance
The financial statements have been prepared in accordance with the Statement of
Recommended Accounting Practice (“RAP”) 7 “Reporting Framework for Unit Trusts” issued
by the Institute of Singapore Chartered Accountants (“ISCA”), and the applicable
requirements of the Code on Collective Investment Schemes (“CIS Code”) issued by the
Monetary Authority of Singapore (“MAS”) and the provisions of the Trust Deed. RAP 7
requires that accounting policies adopted generally comply with the principles relating to
recognition and measurement of the Singapore Financial Reporting Standards (“FRS”).
2.2 Basis of measurement
The financial statements are prepared on the historical cost basis, except for investment
properties, derivative financial instruments and certain financial assets and financial
liabilities which are measured at fair value.
2.3 Functional and presentation currency
The financial statements are presented in Singapore dollars, which is the Group’s
functional currency. All financial information presented in Singapore dollars has been
rounded to the nearest thousand, unless otherwise stated.
2.4 Use of estimates and judgements
The preparation of financial statements in conformity with RAP 7 requires management to
make judgements, estimates and assumptions that affect the application of policies and
reported amounts of assets, liabilities, income and expenses. Actual results may differ
from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the estimates are revised and
in any future periods affected.
Information about critical judgement in applying accounting policies that have the most
significant effect on the amount recognised in the financial statements is described in the
following notes:
• Note 5 – Classification of investment properties
• Note 7 – Classification of associate and joint ventures
Information about assumptions and estimation, uncertainty that have the most significant
risk of resulting in a material adjustment within the next financial year are included in
following notes:
• Note 5 – Valuation of investment properties
• Note 25 – Valuation of financial instruments
Measurement of fair values
A number of the Group’s accounting policies and disclosures require the measurement of
fair values, for both financial and non-financial assets and liabilities.
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