Report - Nikko AM Asia Limited

NIKKO AM SHENTON GLOBAL PROPERTY SECURITIES FUND
(Constituted under a Trust Deed registered in the Republic of Singapore)
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 30 June 2013
2. Significant accounting policies (continued)
(a)
Basis of preparation (continued)
The Fund has adopted the recommendations of Recommended Accounting
Practice 7 “Reporting Framework for Unit Trusts” issued by the Institute of
Singapore Chartered Accountants (formerly known as Institute of Certified Public
Accountants of Singapore) in June 2012 ("RAP 7") for the financial year beginning
1 July 2012.
The adoption of the RAP 7 did not result in substantial changes to the Fund's
accounting policies and had no material effect on the amounts reported for the
current or prior financial years except as disclosed below.
Classification of net assets attributable to unitholders
RAP7 recommends that a unit trust should classify its units on initial recognition as
equity and present a Statement of Movements in Unitholders' Funds summarising
the movements in the value of the trust/fund. Previously, the Fund had classified its
units as liabilities and presented the movements in value in the notes to the
financial statements in accordance with the existing framework issued in May 2005.
On the adoption of RAP7, the Fund has reclassified its units from liabilities to
equity. Consequently, the Fund's distributions will no longer be classified as a
finance cost in the Statement of Total Return, but will be recorded as a distribution
in the Statement of Movements in Unitholders' Funds.
The reclassification has been applied retrospectively.
Distributions
RAP7 recommends that distributions should be accrued for at the point in time
when the necessary approvals have been obtained and a legal or constructive
obligation has been created. Previously, the Fund had recognised distributions on
an ex-date basis.
The change in accounting policy has been applied retrospectively.
Financial instruments: fair value measurement
RAP7 recommends disclosures and presentation of financial instruments in
accordance with Singapore Financial Reporting Standard 107 "Financial
Instruments: Disclosures" ("FRS107") wherever possible.
Apart from enhanced disclosures to present fair value measurements by level of a
fair value measurement hierarchy, the Fund has previously presented disclosures
of its financial instruments in accordance with FRS 107 voluntarily. The adoption of
this recommendation results in additional disclosures but does not have an impact
on the accounting policies and measurement bases of the Fund.
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