NOTES TO THE FINANCIAL STATEMENTS
(CONT’D)
31 DECEMBER 2015
2.
SIGNIFICANT ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION (CONT’D)
2A.
Significant accounting policies (cont’d)
Foreign currency transactions
The functional currency of the Trust is the Singapore dollar as it reflects the primary economic environment in
which the entity operates. Transactions in foreign currencies are recorded in the functional currency at the rates
ruling at the dates of the transactions. At each end of the reporting year, recordedmonetary balances and balances
measured at fair value that are denominated in non-functional currencies are reported at the rates ruling at the
end of the reporting year and fair value measurement dates respectively. All realised and unrealised exchange
adjustment gains and losses are dealt with in the profit or loss except when recognised in other comprehensive
income and if applicable deferred in Unitholders’ funds such as for qualifying cash flow hedges. The presentation
is the functional currency.
Translation of financial statements of other entities
Each entity in the Group determines the appropriate functional currency as it reflects the primary economic
environment in which the relevant reporting entity operates. In translating the financial statements of such an
entity for incorporation in the consolidated financial statements in the presentation currency the assets and
liabilities denominated in other currencies are translated at end of the reporting year rates of exchange and the
income and expense items for each statement presenting profit or loss and other comprehensive return are
translated at average rates of exchange for the reporting year. The resulting translation adjustments (if any) are
recognised in other comprehensive return and accumulated in a separate component of Unitholders’ funds until
the disposal of that relevant reporting entity.
Segment reporting
Reportable segments are operating segments or aggregations of operating segments that meet specified criteria.
Operating segments are components about which separate financial information is available that is evaluated
regularly by the chief operating decision maker in deciding how to allocate resources and in assessing the
performance. Segment information has not been presented as all of the Group’s investment properties are used
primarily for retail purposes and are all located in Indonesia. They are regarded as one component by the chief
operating decision maker.
Borrowing costs
Borrowing costs are interest and other costs incurred in connection with the borrowing of funds. The interest
expense is calculated using the effective interest rate method. Borrowing costs are recognised as an expense in
the period in which they are incurred except that borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset that necessarily take a substantial period of time to get ready
for their intended use or sale are capitalised as part of the cost of that asset until substantially all the activities
necessary to prepare the qualifying asset for its intended use or sale are complete.
Unit based payments
The issued capital is increased by the fair value of the transaction. Incidental costs directly attributable to the
issuance of units are deducted against Unitholders’ funds.
ANNUAL REPORT 2015
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