CG malls europe - Commerz Real

Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
2.1. Basis of preparation (continued)
The preparation of financial statements in conformity with IFRS (as adopted by the EU) requires the use of certain critical
accounting estimates. It also requires management to exercise its judgement in the process of applying the Fund’s
accounting policies. Changes in assumptions may have a significant impact on the financial statements in the period the
assumptions changed. Management believes that the underlying assumptions are appropriate. The areas involving a
higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated
financial statements are disclosed in note 4.
(a) Standards and amendments to existing standards effective January 1, 2009
Financial Statements
The following standards, amendments and interpretations are mandatory for accounting periods beginning on or after
January 1, 2009 and are of relevance to the Fund:
Standard/ Content Applicable for financial
Interpretation years beginning on / after
IAS 1 Presentation of financial statements January 1, 2009
IAS 23 Borrowing costs January 1, 2009
IAS 32 and IAS 1 Puttable financial instruments and obligations arising on liquidation January 1, 2009
IFRS 7 Amendment: Improving disclosures about financial instruments January 1, 2009
IFRIC 15 Agreements for the construction of real estate January 1, 2009
IAS 40R Investment property January 1, 2009
• IAS 1, ‘Presentation of financial statements’ A revised version of IAS 1 was issued in September 2007. The revised
standard prohibits the presentation of items of income and expenses (that is, ‘non-owner changes in equity’) in the
statement of changes in equity, requiring ‘non-owner changes in equity’ to be presented separately from owner
changes in equity in a statement of comprehensive income. As a result, the Group presents in the consolidated
statement of changes in equity all owner changes in equity; all non-owner changes in equity are presented in the
consolidated statement of comprehensive income. The adoption of this revised standard impacts only presentation
aspects; therefore, it has no impact on the Fund’s net assets.
• IAS 23, ‘Borrowing costs’ A revised version was issued in March 2007. Under the revised standard, an entity is required
to capitalise borrowing costs directly attributable to the acquisition, construction or production of a qualifying
asset (one that takes a substantial period of time to get ready for use or sale) as part of the cost of that asset. The option
of immediately expensing those borrowing costs was removed. The capitalisation is required for qualifying assets for
which the commencement date for capitalisation is on or after 1 January 2009. For qualifying assets measured at fair
value inventories, that are manufactured or otherwise produced in large quantities on a repetitive basis, the application
of IAS 23 is not required. The Group has applied this standard in accordance with the transition provisions. Since at reporting
date no qualifying assets were held or had been sold by the Fund, the adoption had no impact on its net assets.
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