Page 92 - Report_to_Unitholders_2012

Notes to the Financial Statements
1. General (Cont'd)
(e) Divestment fee (Cont'd)
Any payment to third party agents or brokers in connection with the divestment of any authorised
investments for the Trust shall be paid by the Manager to such persons out of the deposited property of
the Trust or the assets of the relevant special purpose vehicle, and not out of the divestment fee received
or to be received by the Manager.
2. Basis of preparation
(a) Statement of compliance
The financial statements have been prepared in accordance with the Statement of Recommended
Accounting Practice (“RAP”) 7 “Reporting Framework for Unit Trusts” issued by the Institute of Certified
Public Accountants of Singapore, and the applicable requirements of the Code on Collective Investment
Schemes (the “CIS Code”) issued by the Monetary Authority of Singapore (“MAS”) and the provisions of the
Trust Deed. RAP 7 requires that accounting policies adopted should generally comply with the principles
relating to recognition and measurement of the Singapore Financial Reporting Standards (“FRS”).
(b) Basis of measurement
The financial statements have been prepared on the historical cost basis except for the following material
items on the statements of financial position:
• derivative financial instruments are measured at fair value
• investment properties are measured at fair value
(c) Functional and presentation currency
Items included in the financial statements of each entity in the Group are measured using the currency
that best reflects the economic substance of the underlying events and circumstances relevant to that
entity (the “functional currency”). The consolidated financial statements of the Group are presented in
Singapore dollars, which is the functional currency of the Trust. All financial information presented in
Singapore dollars has been rounded to the nearest thousand, unless otherwise stated.
(d) Use of estimates and judgements
The preparation of financial statements in conformity with RAP 7 requires the Manager to make judgements,
estimates and assumptions that affect the application of accounting policies and the reported amounts of
assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical
experience and various other factors that are believed to be reasonable under the circumstances, the
results of which form the basis of making the judgements about carrying amounts of assets and liabilities
that are not readily apparent from other sources.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimates are revised and any future periods affected.
Strengthening Fundamentals, Building a Sustainable Future 90