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)
Subsidiaries
A subsidiary is an entity including unincorporated and special purpose entity that is controlled by the reporting
entity and the reporting entity is exposed, or has rights, to variable returns from its involvement with the investee
and has the ability to affect those returns through its power over the investee. The existence and effect of
substantive potential voting rights that the reporting entity has the practical ability to exercise (that is, substantive
rights) are considered when assessing whether the reporting entity controls another entity.
In the Trust’s separate financial statements, the investments in subsidiaries are accounted for at cost less any
allowance for impairment in value. Impairment loss recognised in profit or loss for a subsidiary is reversed only
if there has been a change in the estimates used to determine the asset’s recoverable amount since the last
impairment loss was recognised. The carrying values and the net book values of the investments in subsidiaries
are not necessarily indicative of the amounts that would be realised in a current market exchange.
Business combinations
Business combinations are accounted for by applying the acquisition method. There were none during the
reporting year.
Impairment of non-financial assets
Irrespective of whether there is any indication of impairment, an annual impairment test is performed at the same
time every year on an intangible asset with an indefinite useful life or an intangible asset not yet available for use.
The carrying amount of other non-financial assets is reviewed at each end of the reporting year for indications
of impairment and where an asset is impaired, it is written down through the profit or loss to its estimated
recoverable amount. The impairment loss is the excess of the carrying amount over the recoverable amount
and is recognised in the profit or loss unless the relevant asset is carried at a revalued amount, in which case the
impairment loss is treated as a revaluation decrease. The recoverable amount of an asset or a cash-generating
unit is the higher of its fair value less costs to sell and its value in use. When the fair value less costs of disposal
method is used, any available recent market transactions are taken into consideration. When the value in use
method is adopted, in assessing value in use, the estimated future cash flows are discounted to their present
value using a pre-tax discount rate that reflects current market assessments of the time value of money and the
risks specific to the asset.
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately
identifiable cash flows (cash-generating units). At each end of the reporting year non-financial assets other than
goodwill with impairment loss recognised in prior periods are assessed for possible reversal of the impairment.
An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying
amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been
recognised.
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