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CapitaLand Mall Trust
Annual Report 2015
Overview
Sustainability
Business
Review
Portfolio
Details
Corporate
Governance &
Transparency
Financials &
Additional
Information
2 Basis of preparation
(continued)
2.4 Use of estimates and judgements
(continued)
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.
When measuring the fair value of an asset or a liability, the Group uses market observable data as far as
possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in
the valuation techniques as follows:
s ,EVEL
1UOTED PRICES UNADJUSTED IN ACTIVE MARKETS FOR IDENTICAL ASSETS OR LIABILITIES
s ,EVEL
)NPUTS OTHER THAN QUOTED PRICES INCLUDED IN ,EVEL
THAT ARE OBSERVABLE FOR THE ASSET OR
liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
s ,EVEL
)NPUTS FOR THE ASSET OR LIABILITY THAT ARE NOT BASED ON OBSERVABLE MARKET DATA
(unobservable data).
If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value
hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value
hierarchy as the lowest level input that is significant to the entire measurement (with Level 3 being the lowest).
The Group recognises transfers between levels of the fair value hierarchy as of the end of the reporting period
during which the change has occurred.
Further information about the assumptions made in measuring fair values is included in the following notes:
s .OTE n 6ALUATION OF INVESTMENT PROPERTIES
s .OTE n 6ALUATION OF lNANCIAL INSTRUMENTS
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.
3.1 Consolidation
Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has
rights to, variable returns from its involvement with the entity and has the ability to affect those returns through
its power over the entity. The financial statements of subsidiaries are included in the consolidated financial
statements from the date that control commences until the date that control ceases.
Where the Group acquires an asset or a group of assets that does not constitute a business, the cost of
investment is allocated to the individual identifiable assets acquired and liabilities assumed at the date of
acquisition.
