/ 1 2 0
NOTES TO THE FINANCIAL STATEMENTS
C A M B R I D G E I N D U S T R I A L T R U S T
A N N U A L R E P O R T 2 0 1 5
2.
Basis of preparation
2.1 Statement of compliance
The financial statements are prepared in accordance with the recommendations of 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 CIS Code issued by the MAS
and the provisions of the Trust Deed. RAP 7 requires that accounting policies adopted should generally
comply with the recognition and measurement principles of Singapore Financial Reporting Standards
(“FRS”).
2.2 Basis of measurement
The financial statements have been prepared on the historical cost basis, except for investment properties,
financial derivatives and certain financial liabilities, which are stated at fair value.
2.3 Functional and presentation currency
The financial statements are presented in Singapore dollars, which is the Trust’s functional currency. All
financial information presented in Singapore dollars has been rounded to the nearest thousand, unless
otherwise stated.
2.4 Use of estimates and judgments
The preparation of financial statements in conformity with RAP 7 requires the Manager to make judgments,
estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities,
income and expenses. Actual results may differ from these estimates.
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.
In particular, information about critical judgements and, 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 7
–
Assessment of collectibility of trade and other receivables
•
Note 18
–
Assessment of income tax provision
•
Note 21
–
Valuation of investment properties
•
Note 25
–
Valuation of financial instruments
