Notes to The
Financial Statements
Year ended 31 December 2015
3 Significant accounting policies (Cont’d)
3.11 Segment reporting
An operating segment is a component of the Group that engages in business activities from which it may earn
revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s
other components. All operating segments’ operating results are reviewed regularly by the Manager’s CEO to make
decisions about resources to be allocated to the segment and assess its performance, and for which discrete
financial information is available.
Segment results include items directly attributable to a segment as well as those that can be allocated on a
reasonable basis. Unallocated items comprise mainly corporate assets and expenses, and tax assets and liabilities.
Segment capital expenditure is the total cost incurred during the year on additions to investment properties that
are expected to be used for more than one year.
3.12 New standards and interpretations not yet adopted
A number of new standards, amendments to standards and interpretations are effective for annual periods beginning
after 1 January 2015, and have not been applied in preparing these financial statements. In addition, Singapore-
incorporated companies listed on the Singapore Exchange (SGX) will apply a new financial reporting framework
identical to the International Financial Reporting Standards (“IFRS”) for financial year ending 31 December 2018
onwards. Singapore-incorporated companies listed on SGX will have to assess the impact of IFRS 1: First-time
adoption of IFRS when transitioning to the new reporting framework. The Manager is currently assessing the
impact of transitioning to the new reporting framework on the financial statements of the Group and the Trust.
These new standards include, among others FRS 109
Financial Instruments
which is mandatory for adoption by
the Group on 1 January 2018.
FRS 109 replaces most of the existing guidance in FRS 39
Financial Instruments: Recognition and Measurement.
It
includes revised guidance on classification and measurement of financial instruments, a new expected credit loss
model for calculating impairment on financial assets, and new general hedge accounting requirements.
As FRS 109, when effective, will change the existing accounting standards and guidance applied by the Group
and the Trust in accounting for financial instruments, the standard is expected to be relevant. The Group does not
plan to early adopt the standard.
109
ParkwayLife REIT
Annual Report 2015
