NOTES TO THE
FINANCIAL STATEMENTS
Year ended 31 December 2014
24 FINANCIAL INSTRUMENTS (CONT’D)
Determination of fair values (cont’d)
(a)
Derivative financial instruments
The fair values of derivative financial instruments such as interest rate swaps, forward foreign currency
contracts and cross currency interest rate swap are based on valuation reports from financial institutions.
(b) Floating interest-bearing borrowings
The carrying amounts of interest-bearing bank borrowings which are repriced within 3 months approximate
the corresponding fair values (refer to Note 10).
(c)
Other financial assets and liabilities
The carrying amounts of other financial assets and liabilities with a maturity of less than one year (including
trade and other receivables, cash and cash equivalents and trade and other payables) approximate their
fair values because of the short period to maturity.
25 FINANCIAL RATIOS
2014
2013
%
%
Ratio of expenses to weighted average net assets
1
– excluding performance component of Manager’s fees
0.85
0.82
– including performance component of Manager’s fees
1.27
1.22
Portfolio turnover rate
2
7.30
9.01
1
The annualised ratios are computed in accordance with the guidelines of Investment Management Association of Singapore.
The expenses used in the computation relate to expenses at the Group level, excluding property related expenses, finance
costs, income tax expense and foreign exchange gains/(losses).
2
The annualised ratio is computed based on the lesser of purchases or sales of underlying investment properties of the Group
expressed as a percentage of daily average net asset value.
26 OPERATING SEGMENTS
Segment information is presented in respect of the Group’s strategic business units. For each of the reportable
segments, the CEO of the Manager reviews internal management reports regularly. This forms the basis of
identifying the operating segments of the Group.
Performance measurement based on segment profit before income tax and non-financial assets as well as financial
assets attributable to each segment is used as the Manager believes that such information is most relevant in
evaluating the results of certain segments relative to other entities that operate within these industries.
Segment results, assets and liabilities include items directly attributable to a segment as well as those that can
be allocated on a reasonable basis. Unallocated items comprise mainly assets and expenses of the subsidiary
providing financial and treasury services which were not allocated to an identified segment.
Segment capital expenditure is the total cost incurred on additions to investment properties that are expected to
be used for more than one year.
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