Page 63 - Forterra

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NOTES TO THE
FINANCIAL STATEMENTS
2 BASIS OF PREPARATION
(a) Statement of compliance
The financial statements have been prepared in accordance with the provisions of the
Singapore Business Trusts Act, Chapter 31A (the “Act”) and the Singapore Financial Reporting
Standards (“FRS”).
(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 3(m) – Estimation of income tax
• Note 4 – Valuation of investment properties
• Note 29 – Valuation of financial instruments