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Notes to the Financial Statements
2 BASIS OF PREPARATION (CONTINUED)
(b) Basis of measurement
The financial statements have been prepared on the historical cost basis, except as otherwise disclosed
below.
(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 FRSs requires the Trustee-Manager to make
judgements, estimates and assumptions that affect the application of accounting policies and reported amounts
of assets, liabilities, income and expenses. Actual results may differ from these estimates.
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.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is revised and in any future periods effected.
Critical accounting estimates and assumptions used that are significant to the financial statements, and areas
involving a high degree of judgement, are disclosed in the following notes:
• Note 4 – Valuation of investment properties
• Note 14 – Deferred tax
• Note 29 – Valuation of financial instruments
(e) Changes in accounting policies
Identification of related party relationships and related party disclosures
From 1 January 2011, the Group has applied the revised FRS 24 Related Party Disclosures (2010) to identify
parties that are related to the Group and to determine the disclosures to be made on transactions and
outstanding balances, including commitments, between the Group and its related parties. FRS 24 (2010)
improved the definition of a related party in order to eliminate inconsistencies and ensure symmetrical
identification of relationships between two parties.
The adoption of FRS 24 (2010) affects only the disclosures made in the financial statements. There is no financial
effect on the results and financial position of the Group for the current and previous financial years. Accordingly,
the adoption of FRS 24 (2010) has no impact on earnings per unit.
SAR1112034_TCT_AR_().indb 68 3/23/2012