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Notes to the financial statements
7. Other assets
Other assets comprise other receivables of $1,107,000 (2009: $1,503,000) and mechanical and electrical
equipment of $71,635,000 (2009: Nil) specific to the nature of a tenant’s industry which are installed in a building
that will be leased to the tenant. The mechanical and electrical equipment will be transferred to finance lease
receivable upon commencement of lease.
8. Trade and other receivables
2010 2009
$’000 $’000
Trade receivables, gross 3,066 2,137
Impairment losses - (102)
Trade receivables, net 3,066 2,035
Amounts due from related parties (trade) 71 61
Deposits 379 205
Other receivables 10,994 12,007
Loans and receivables 14,510 14,308
Prepayments 10,108 7,922
24,618 22,230
A-REIT primary exposure to credit risk arises through its trade receivables, deposits and other receivables.
A-REIT has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis.
The tenants included in trade receivables are engaged in a wide spectrum of business activities across industry
segments. A-REIT’s historical experience in collection of trade receivables falls within the recorded allowances.
Due to these factors, the Manager believes that no additional credit risk beyond amounts provided for collection
losses is inherent in A-REIT’s trade receivables.
134 Ascendas real estate investment trust