/ 1 2 8
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
3.
Significant accounting policies (Cont’d)
3.9 Distribution policy
The Group’s distribution policy is to distribute 100% of its taxable income available for distribution to
Unitholders. Distributions are made on a quarterly basis at the discretion of the Manager.
3.10 Earnings per unit
The Group presents basic and diluted earnings per unit (“EPU”) data for its units. Basic EPU is calculated
by dividing the total return for the period after tax by the weighted average number of units outstanding
during the year. Diluted EPU is determined by adjusting the total return for the period after tax and the
weighted average number of units outstanding and for the effects of all dilutive potential units.
3.11 Segment reporting
An operating segment is a component of the Group that engages in business activities from which it may
earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of
the Group’s other components. All operating segments’ operating results are reviewed regularly by CIT’s
Chief Operating Decision Makers (“CODM”s) which comprise mainly the Chief Executive Officer, and
Chief Operating Officer and Chief Financial Officer of the Manager, to make decisions about resources to
be allocated to the segments and assess their performance and for which discrete financial information
is available.
3.12 New standards, interpretations and revised recommended accounting practice not yet adopted
A number of new standards, amendments to standards and interpretations are effective for annual periods
beginning after 1 January 2015 and have not been applied in preparing these financial statements.
These new standards include, among others, FRS 115 Revenue from Contracts with Customers and FRS
109 Financial Instruments which are mandatory for adoption by the Group on 1 January 2018.
•
FRS 115 establishes a comprehensive framework for determining whether, how much and when
revenue is recognised. It also introduces new cost guidance which requires certain costs of
obtaining and fulfilling contracts to be recognised as separate assets when specified criteria are
met. When effective, FRS 115 replaces existing revenue recognition guidance, including FRS 18
Revenue, FRS 11 Construction Contracts, INT FRS 113 Customer Loyalty Programmes, INT FRS
115 Agreements for Construction of Real Estate, INT FRS 118 Transfers of Assets from Customers
and INT FRS 31 Revenue – Barter Transactions Involving Advertising Services.
•
FRS 109 replaces most of the existing guidance in FRS 39 Financial Instruments: Recognition
and Measurement. It includes revised guidance on classification and measurement of financial
instruments, a new expected credit loss model for calculating impairment on financial assets, and
new general hedge accounting requirements.
As FRS 115 and FRS 109, when effective, will change the existing accounting standards and guidance
applied by the Group and the Trust in accounting for revenue and financial instruments, these standards
are expected to be relevant to the Group and the Trust. The Group is currently assessing the potential
impact on its financial statements and will implement the standards by the required effective dates. The
Group does not plan to adopt these standards early.
