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Ascott Residence Trust
Annual Report 2015
2 Basis of preparation
2.1 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 Singapore
Chartered Accountants, 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 (“FRSs”).
2.2 Basis of measurement
The financial statements have been prepared on the historical cost basis, except for serviced residence
properties, assets held for sale and certain financial assets and liabilities which are stated at fair value.
2.3 Functional and presentation currency
These financial statements are presented in Singapore dollars, which is the Trust’s functional currency.
All financial information presented in Singapore dollars have been rounded to the nearest thousand, unless
otherwise stated.
2.4 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 reported amounts of assets,
liabilities, income and expenses. Actual results may differ from these estimates.
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 in any future periods affected.
Information about critical judgements in applying accounting policies that have the most significant effect on
the amounts recognised in the financial statements are included in the following notes:
• Note 13 – classification of assets held for sale
• Note 34 – accounting for acquisition of serviced residence properties and subsidiaries
Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material
adjustment within the next financial year are included in the following notes:
• Note 10 – utilisation of tax losses
• Note 33 – valuation of serviced residence properties and assets held for sale
• Note 33 – valuation of financial instruments
Notes to the Financial Statements
Year ended 31 December 2015
