LIPPO-MAPLETREE - Lippo Malls Indonesia Retail Trust - Investor ...

Appendix BCash and cash equivalents—Cash and cash equivalents include bank and cash balances and any highly liquid debt instrumentspurchased with an original maturity of three months or less.Trade receivables—After initial recognition at fair value, trade receivables are measured at amortised cost using the effectiveinterest method except that short-duration receivables with no stated interest rate are normally measuredat original invoice amount unless the effect of imputing interest would be significant. Trade receivables arestated after provision for impairment. The amount of the provision for impairment is recognized in thestatement of total return. A trade receivable amount is regarded as impaired if there is objective evidenceof impairment as a result of one or more events that occurred after the initial recognition and that loss eventhas an impact on the estimated future cash flows of the financial asset that can be reliably estimated. Thecarrying amounts of trade receivables are assumed to approximate their fair value. Normally no interest ischarged on trade receivables.Loans and other receivables—Loans and other receivables are non-derivative financial assets with fixed or determinable payments thatare not quoted in an active market, other than: (a) those that the entity intends to sell immediately or in thenear term and are classified as held for trading, and those that the entity upon initial recognition designatesas at fair value through profit or loss; (b) those that the entity upon initial recognition designates asavailable for sale; or (c) those for which the holder may not recover substantially all of its initial investment,other than because of credit deterioration and are classified as available for sale. Items with a shortduration are not discounted. After initial recognition such financial assets, including derivatives that areassets, are measured at their fair values, without any deduction for transaction costs that may be incurredon sale or other disposal, except for the non-current financial assets that are loans and receivables whichare measured at amortised cost using the effective interest method less provision for impairment. Theseitems are included in the balance sheet in loans and receivables as current assets or as non-current assetswhere the maturities are greater than 12 months after the balance sheet date.Investment properties—Investment property is property owned or held under a finance lease to earn rentals or for capitalappreciation or both, rather than for use in the production or supply of goods or services or foradministrative purposes or sale in the ordinary course of business. After initial recognition at costincluding transaction costs the fair value model is used to measure the investment property at fairvalue on the existing use basis to reflect the actual market state and circumstances as of the balance sheetdate, not as of either a past or future date. A gain or loss arising from a change in the fair value ofinvestment property is included in the statement of total return for the period in which it arises. Therevaluations are made periodically on a systematic basis at least once yearly by external independentvaluers having an appropriate recognised professional qualification and recent experience in the locationand category of property being valued.Net assets attributable to Unitholders—Net assets attributable to Unitholders represents the Unitholders’ residual interest in LMIR Trust’s netassets upon termination.Expenses incurred in connection with the initial public offering of LMIR Trust are deducted directly from netassets attributable to Unitholders.Impairment of non-financial assets—At each full year balance sheet date an assessment is made whether there is any indication that adepreciable or amortisable asset may be impaired. If any such indication exists, an estimate is made of therecoverable amount of the asset. Irrespective of whether there is any indication of impairment, an annualimpairment test is performed at the same time every year on an intangible asset with an indefinite usefullife or an intangible asset not yet available for use. The impairment loss is the excess of the carryingamount over the recoverable amount and is recognised in the statement of total return unless the relevantasset is carried at a revalued amount, in which case the impairment loss is treated as a revaluationdecrease. The recoverable amount of an asset or a cash-generating unit is the higher of its fair value lessB-11