NOTES TO THE FINANCIAL STATEMENTS
3 Significant accounting policies (Cont’d)
3.2 Investment properties
Investment properties are accounted for as non-current assets, except if they meet the conditions to
be classified as held for divestment (see Note 3.4 below). These properties are initially stated at cost on
acquisition, and at valuation thereafter. The cost of a purchased property comprises its purchase price
and any directly attributable expenditure. Transaction costs are included in the initial measurements.
Valuations are determined in accordance with the Trust Deed, which requires the investment properties
to be valued by independent registered valuers in the following manner:
(i)
in such manner and frequency required under the CIS code issued by MAS; and
(ii)
at least once in each period of 12 months following the acquisition of each investment property
Any increase or decrease on revaluation is credited or charged directly to the Statement of Total Return
as a net change in fair value of investment properties.
Subsequent expenditure relating to investment properties that have already been recognised is added to
the carrying amount of the asset when it is probable that future economic benefits, in excess of originally
assessed standard of performance of the existing asset, will flow to the Group. All other subsequent
expenditure is recognised as an expense in the period in which it is incurred.
When an investment property is disposed of, the resulting gain or loss recognised in the Statement of
Total Return is the difference between net disposal proceeds and the carrying amount of the property.
Investment properties are not depreciated. The properties are subject to continued maintenance and
regularly revalued on the basis set out above.
3.3 Investment properties under development
Investment properties under development are properties constructed or developed for future use as
investment property. Investment properties under development are measured at fair value. The difference
between the fair value and cost (including acquisition costs, development expenditure, borrowing costs
and other related expenditures) is credited or charged to the Statement of Total Return as a change
in fair value of investment properties under development. Upon completion, the carrying amounts are
reclassified to investment properties.
3.4 Investment properties held for divestment
Investment properties that are expected to be recovered primarily through divestment rather than
through continuing use, are classified as held for divestment and accounted for as current assets. These
investment properties are measured at fair value and any increase or decrease on revaluation is credited
or charged directly to the Statement of Total Return as a net change in fair value of investment properties.
Upon disposal, the resulting gain or loss recognised in the Statement of Total Return is the difference
between net disposal proceeds and the carrying amount of the property.
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