NOTES TO THE FINANCIAL STATEMENTS
2 Basis of preparation (Cont’d)
2.2 Basis of measurement
The financial statements have been prepared on the historical cost basis, except for investment properties,
investment properties under development, financial derivatives and certain financial liabilities, which are
stated at fair value.
2.3 Functional and presentation currency
The financial statements are presented in Singapore dollars, which is the Trust’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 judgments
The preparation of financial statements in conformity with RAP 7 requires the Manager to make
judgments, 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.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised and in any future periods.
In particular, information about critical judgements and, assumptions and estimation uncertainties that
have a significant risk of resulting in a material adjustment within the next financial year are included in
the following notes:
•
Note 8
– Assessment of collectibility of trade and other receivables
•
Note 19 – Assessment of income tax provision
•
Note 22 – Valuation of investment properties and investment properties under
development
•
Note 25 – Valuation of financial instruments
2.5 Changes in accounting policies
Disclosure of interests in other entities
From 1 January 2014, as a result of FRS 112
Disclosure of Interests in Other Entities
, the Group has
expanded its disclosures about its interests in jointly controlled entity (see Note 7).
Offsetting of financial assets and financial liabilities
Under the Amendments to FRS 32 Financial Instruments:
Presentation – Offsetting Financial Assets and
Financial Liabilities
, to qualify for offsetting, the right to set off a financial asset and a financial liability must
not be contingent on a future event and must be enforceable both in the normal course of business and
in the event of default, insolvency or bankruptcy of the entity and all counterparties. The amendments
were applied retrospectively.
As at 31 December 2014 and 2013, there were no such arrangements that met the offsetting criteria.
CAMBRIDGE INDUSTRIAL TRUST | A WINNING FORMULA
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