Notes to The
Financial Statements
Year ended 31 December 2015
3 Significant accounting policies (Cont’d)
3.3 Investment properties
Investment properties are properties held either to earn rental income or for capital appreciation or for both, but not
for sale in the ordinary course of business. Investment properties are accounted for as non-current assets and are
stated at cost on acquisition, and at valuation thereafter. The cost of a purchased property comprises its purchase
price and any directly attributable expenditure. Valuations are determined in accordance with the Trust Deed,
which requires the investment properties to be valued by independent registered valuers in the following manner:
(i)
in such manner and frequency required under the CIS code issued by MAS; and
(ii)
at least once a year, on the 31st December of each year.
Any increase or decrease on revaluation is credited or charged directly to the Statement of Total Return as a net
change in fair value of investment properties.
Subsequent expenditure relating to investment properties that has already been recognised is added to the carrying
amount of the asset when it is probable that future economic benefits, in excess of originally assessed standard
of performance of the existing asset, will flow to the Group. All other subsequent expenditure is recognised as an
expense in the period in which it is incurred.
When an investment property is disposed of, the resulting gain or loss recognised in the Statement of Total Return
is the difference between net disposal proceeds and the carrying amount of the property.
Investment properties are not depreciated. The properties are subject to continued maintenance and regularly
revalued on the basis set out above.
3.4 Financial instruments
Non-derivative financial assets
The Group initially recognises loans and receivables and deposits on the date that they are originated. All other
financial assets are recognised initially on the trade date at which the Group becomes a party to the contractual
provisions of the instrument.
The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire,
or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which
substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred
financial assets that is created or retained by the Group is recognised as a separate asset or liability.
Financial assets and liabilities are offset and the net amount presented in the statement of financial position when,
and only when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to
realise the asset and settle the liability simultaneously.
Non-derivative financial assets are classified into loans and receivables category.
102
ParkwayLife REIT
Annual Report 2015
