1.
GENERAL (CONT’D)
Accounting convention (cont’d)
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.
Basis of presentation
The consolidated financial statements include the financial statements made up to the end of the reporting year
of the Trust and all of its subsidiaries. The consolidated financial statements are the financial statements of the
Group in which the assets, liabilities, equity, income, expenses and cash flows of the parent and its subsidiaries
are presented as those of a single economic entity and are prepared using uniform accounting policies for like
transactions and other events in similar circumstances. All significant intragroup balances and transactions,
including income, expenses and cash flows are eliminated on consolidation. Subsidiaries are consolidated from
the date the reporting entity obtains control of the investee and cease when the reporting entity loses control
of the investee. Control exists when the Group has the power to govern the financial and operating policies so
as to gain benefits from its activities.
Changes in the Group’s ownership interest in a subsidiary that do not result in the loss of control are accounted
for within Unitholders’ funds as transactions with owners in their capacity as owners. The carrying amounts of
the Group’s and non-controlling interests are adjusted to reflect the changes in their relative interests in the
subsidiary. When the Group loses control of a subsidiary it derecognises the assets and liabilities and related equity
components of the former subsidiary. Any gain or loss is recognised in profit or loss. Any investment retained in
the former subsidiary is measured at its fair value at the date when control is lost and is subsequently accounted
for as available-for-sale financial assets in accordance with FRS 39.
Basis of preparation of financial statements
The preparation of financial statements in conformity with generally accepted accounting principles requires the
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting year. Actual results could differ from those estimates. The estimates
and assumptions are reviewed on an ongoing basis. Apart from those involving estimations, management has
made judgements in the process of applying the entity’s accounting policies. The areas requiring management’s
most difficult, subjective or complex judgements, or areas where assumptions and estimates are significant to
the financial statements, are disclosed at the end of this footnote, where applicable.
Net assets attributable to Unitholders
RAP 7 requires that the unit trusts classify the units on initial recognition as equity. The net assets attributable
to Unitholders comprise the residual interest in the assets of the unit trust after deducting its liabilities. Under
RAP 7, distributions are accrued for at the reporting year end date if the Manager has the discretion to declare
distributions without the need for Unitholder or trustee approval and a constructive or legal obligation has been
created. Distributions to Unitholders have been recognised as liabilities when they are declared.
NOTES TO THE FINANCIAL STATEMENTS
(CONT’D)
31 DECEMBER 2015
ANNUAL REPORT 2015
79
