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LIPPO MALLS INDONESIA RETAIL TRUST ANNUAL REPORT 2014
Notes to the Financial Statements
31 December 2014
1.
GENERAL
Lippo Malls Indonesia Retail Trust (“LMIR Trust” or the “Trust”) is a Singapore-domiciled unit trust constituted
pursuant to the Trust Deed dated 8 August 2007 (“Trust Deed”) entered into between LMIRT Management Ltd
(the “Manager”) and HSBC Institutional Trust Services (Singapore) Limited (the “Trustee”), governed by the laws of
the Republic of Singapore.
The Trust is listed on the Singapore Exchange Securities Trading Limited (“SGX-ST”).
The financial statements are presented in Singapore dollars, recorded to the nearest thousands, and they cover LMIR
Trust and its subsidiaries (collectively the “Group”).
The board of directors of the Manager approved and authorised these financial statements for issue on 25 March 2015.
The principal activity of the Group and of the Trust is to invest in a diversified portfolio of income-producing real estate
properties in Indonesia. These are primarily used for retail and/or retail-related purposes. The primary objective is to
deliver regular and stable distributions to unitholders and to achieve long-term growth in the net asset value per unit.
The registered office of the Manager is located at 50 Collyer Quay, #06-07 OUE Bayfront, Singapore 049321.
The financial position of the Group, its cash flows, liquidity position and borrowing facilities are described in the notes
to the financial statements. In addition, the notes to the financial statements include the Group’s objectives, policies
and processes for managing its capital; its financial risk management objectives; details of its financial instruments;
and its exposures to credit risk, foreign currency risk, interest rate risk and liquidity risk.
The Group’s forecasts and projections, taking account of reasonably possible changes in performance, show that the
Group should be able to operate within its current facilities. The Group has considerable financial resources together
with good relationship with its tenants and suppliers.
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting convention
The financial statements have been prepared in accordance with the recommendations of the revised Statement of
Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts” (“RAP 7”) issued by the Institute of
Singapore Chartered Accountants 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 the accounting policies should generally comply with the principles relating to recognition
and measurement of the Financial Reporting Standards (“FRS”) issued by the Accounting Standards Council.
The financial statements are prepared on a going concern basis under the historical cost convention except where the
FRS require an alternative treatment (such as fair values) as disclosed where appropriate in these financial statements.
Other comprehensive return comprises items of income and expenses (including reclassification adjustments) that are
not recognised in the income statement, as required or permitted by FRS. Reclassification adjustments are amounts
reclassified to profit or loss in the income statement in the current period that were recognised in other comprehensive
income in the current or previous periods. The accounting policies in FRSs may not be applied when the effect of
applying them is immaterial. The disclosure required by FRSs need not be made if the information is immaterial.
