Notes to the financial statements Year ended 31 December 2024 2. BASIS OF PREPARATION (continued) (d) Use of estimates and judgements (continued) Measurement of fair values (continued) Further information about the assumptions made in measuring fair values is included in the following notes: • Note 4 – Investment properties; and • Note 29 – Valuation of financial instruments. (e) Adoption of new and revised standards In the current financial year, the Group and the Trust have applied the following FRSs, amendments to and interpretations of FRSs for the first time for the annual period beginning on 1 January 2024: • Amendments to FRS 1: Classification of Liabilities as Current or Non-current • Amendments to FRS 1: Non-current Liabilities with Covenants • Amendments to FRS 7 and FRS 107: Supplier Finance Arrangements • Amendments to FRS 116: Lease Liability in a Sale and Leaseback Other than the below, the adoption of these new and amended accounting standards did not have a material effect on the financial statements. Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants The Group and the Trust have adopted Classification of Liabilities as Current or Non-current (Amendments to FRS 1) and Non-current Liabilities with Covenants (Amendments to FRS 1) from 1 January 2024. The amendments apply retrospectively. They clarify certain requirements for determining whether a liability should be classified as current or non-current and require new disclosures for non-current loan liabilities that are subject to covenants within 12 months after the reporting period. As disclosed in Note 12, the Group and the Trust have interest-bearing borrowings that are subject to specific covenants. As at 31 December 2024, the Group and the Trust have complied with all loan covenants. 3. MATERIAL ACCOUNTING POLICIES The accounting policies set out below have been applied consistently to all periods presented in these financial statements and have been applied consistently by Group entities. (a) Basis of consolidation (i) Business combinations and property acquisitions The Group accounts for business combinations using the acquisition method when the acquired set of activities and assets meets the definition of a business and control is transferred to the Group (see Note 3(a)(ii)). In determining whether a particular set of activities and assets is a business, the Group assesses whether the set of assets and activities acquired includes, at a minimum, an input and substantive process and whether the acquired set has the ability to produce outputs. The Group has an option to apply a ‘concentration test’ that permits a simplified assessment of whether an acquired set of activities and assets is not a business. The optional concentration test is met if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. 103 Annual Report 2024
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