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Notes to the financial statements
(v)
Energy audit services
For energy audit services, A-REIT will pay the Property Manager $4,000 per chiller for the first
two sets of chiller in the building and $2,000 for any subsequent set of chiller in the building.
In addition to these fees, A-REIT will share with the Property Manager 40% of the cost savings
achieved in each building subject to a maximum of $40,000 per building within a period of 3
years.
2. Basis of preparation
(a)
Statement of compliance
The financial statements have been prepared in accordance with the recommendations of Statement
of Recommended Accounting Practice (“RAP”) 7 “Reporting Framework for Unit Trusts” issued by the
Institute of Certified Public Accountants of Singapore, and the applicable requirements of the Code
on Collective Investment Schemes (the “CIS Code”) issued by the Monetary Authority of Singapore
(“MAS”) and the provisions of the Trust Deed.
(b)
Functional and presentation currency
The financial statements are presented in Singapore dollars, which is A-REIT’s functional currency. All
financial information presented in Singapore dollars has been rounded to the nearest thousand, unless
otherwise stated.
(c)
Basis of measurement
The financial statements are prepared on the historical cost basis, except for investment properties, and
certain financial assets and financial liabilities which are stated at fair value as described in note 3(d).
(d)
Use of estimates and judgements
The preparation of financial statements in conformity with RAP 7 requires the Manager to make
judgements, estimates and assumptions that affect the application of policies and reported amounts of
assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical
experience and various other factors that are believed to be reasonable under the circumstances, the
results of which form the basis of making the judgements about carrying amounts of assets and liabilities
that are not readily apparent from other sources.
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
affected.
In particular, information about significant areas of estimation uncertainty and critical judgements in
applying accounting policies that have the most significant effect on the amount recognised in the
financial statements are described in the following note:
• Note 4 – Valuation of investment properties;
• Note 5 – Valuation of investment properties under development; and
• Note 29 – Valuation of financial instruments
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