3 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
3.1 Basis of consolidation (continued)
(iii) Loss of control
Upon the loss of control, the Group derecognises the assets and liabilities of the subsidiary,
any non-controlling interests and the other components of equity related to the subsidiary. Any surplus or
deficit arising on the loss of control is recognised in the Statement of Total Return. If the Group retains any
interest in the previous subsidiary, then such interest is measured at fair value at the date that control is
lost. Subsequently, it is accounted for as an equity-accounted investee or as an available-for-sale financial
asset depending on the level of influence retained.
(iv) Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group
transactions, are eliminated in preparing the consolidated financial statements.
(v) Subsidiaries in the separate financial statements
Investments in subsidiaries are stated in the Trust’s Statement of Financial Position at cost less accumulated
impairment losses.
3.2 Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currencies of the Group’s
entities at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated
in foreign currencies at the end of the reporting period are retranslated to the functional currency at the
exchange rate at that date. The foreign currency gain or loss on monetary items is the difference between
amortised cost in the functional currency at the beginning of the year, adjusted for effective profit rate and
payments during the year, and the amortised cost in foreign currency translated at the exchange rate at
the end of the year.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are
retranslated to the functional currency at the exchange rate at the date that the fair value was determined.
Non-monetary items in a foreign currency that are measured in terms of historical cost are translated using
the exchange rate at the date of the transaction. Foreign currency differences arising on retranslation are
recognised in the Statement of Total Return.
3.3 Investment properties
Investment properties are properties held either to earn rental income or capital appreciation or both,
but not for sale in the ordinary course of business, use in the production or supply of goods or services
or for administrative purposes.
Investment properties are accounted for as non-current assets and are stated at initial cost on
acquisition which includes expenditure that is directly attributable to the acquisition of the investment
properties, and at fair value thereafter. Fair value is determined in accordance with the Trust Deed, which
requires the investment properties to be valued by independent registered valuers in such manner and
frequency required under Appendix 6 of the CIS Code issued by the MAS (“Property Funds Appendix”).
Year ended 31 December 2014
NOTES TO THE FINANCIAL STATEMENTS
SABANA REIT
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ANNUAL REPORT 2014
105
