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Ascott Residence Trust
Annual Report 2015
33 Fair value of assets and liabilities
(continued)
(a) Determining fair value
(continued)
(v) Intra-group financial guarantees
The value of financial guarantees provided by the Trust to its subsidiaries is determined by reference
to the difference in the interest rates, by comparing the actual rates charged by the banks with
these guarantees made available, with the estimated rates that the banks would have charged had
these guarantees not been available.
(vi) Other financial assets and liabilities
The carrying amounts of financial assets and liabilities with a maturity of less than one year (including
trade and other receivables, cash and cash equivalents, and trade and other payables) are assumed
to approximate their fair values because of the short period to maturity. All other financial assets
and liabilities are discounted to determine their fair values.
Where discounted cash flow techniques are used, estimated future cash flows are based on
management’s best estimates and the discount rate is a market-related rate for a similar instrument
at the reporting date.
Notes to the Financial Statements
Year ended 31 December 2015
