NOTES TO THE FINANCIAL STATEMENTS
3 Significant accounting policies (Cont’d)
3.9 Tax (Cont’d)
A “foreign non-individual Unitholder” is one which is not a resident of Singapore for income tax
purposes and;
•
who does not have a permanent establishment in Singapore; or
•
who carries on any operation in Singapore through a permanent establishment in Singapore,
where the funds used to acquire the Units are not obtained from that operation in Singapore.
The above tax transparency ruling does not apply to gains from sale of real estate properties, if considered
to be trading gains derived from a trade or business carried on by CIT or distribution income received
or receivable from its quoted investments. Tax on such gains or profits will be assessed, in accordance
to section 10(1)(a) of the Income Tax Act, Chapter 134 and collected from the Trustee. Where the gains
are capital gains, it will not be assessed to tax and the Trustee and the Manager may distribute the capital
gains without tax being deducted at source.
3.10 Distribution policy
The Group’s distribution policy is to distribute 100% of its taxable income available for distribution to
Unitholders. Distributions are made on a quarterly basis at the discretion of the Manager.
3.11 Earnings per unit
The Group presents basic and diluted earnings per unit (“EPU”) data for its units. Basic EPU is calculated
by dividing the total return for the period after tax by the weighted average number of units outstanding
during the year. Diluted EPU is determined by adjusting the total return for the period after tax and the
weighted average number of units outstanding and for the effects of all dilutive potential units.
3.12 Segment reporting
An operating segment is a component of the Group that engages in business activities from which it
may earn revenues and incur expenses, including revenues and expenses that relate to transactions with
any of the Group’s other components. All operating segments’ operating results are reviewed regularly
by CIT’s Chief Operating Decision Makers (“CODM”s) which comprise mainly the Board of Directors and
the Chief Executive Officer of the Manager, to make decisions about resources to be allocated to the
segments and assess its performance and for which discrete financial information is available.
3.13 New standards, interpretations and revised recommended accounting practice not yet adopted
A number of new standards, amendments to standards and interpretations are effective for annual periods
beginning after 1 January 2014, and have not been applied in preparing these financial statements. None
of these are expected to have a significant effect on the financial statements of the Group and the Trust.
The Group does not plan to adopt these standards early.
CAMBRIDGE INDUSTRIAL TRUST | A WINNING FORMULA
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