ASCENDAS india trust ANNUAL REPORT 2014/15
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
For the financial year ended 31 March 2015
2.
Significant accounting policies (continued)
2.9 Investment Properties
Investment properties of the Group, principally comprising completed office buildings and interest in freehold land held for
a currently undetermined future use, are held for long-term rental yields and capital appreciation.
Investment properties are initially recognised at cost, including transaction costs. Subsequent to initial recognition, investment
properties are carried at fair value, determined on an annual basis by an independent professional valuer on the highest-and-
best-use basis. Changes in fair values are recognised in profit or loss. Investment properties are not subject to depreciation.
Investment properties are subject to renovations or improvements at regular intervals. The cost of major renovations and
improvements is capitalised and the carrying amounts of the replaced components are recognised in profit or loss. The cost
of maintenance, repairs and minor improvements is recognised in profit or loss when incurred.
On disposal of investment properties, the difference between the disposal proceeds and the carrying amount is recognised
in profit or loss.
2.10. Investment in Subsidiaries
A subsidiary is an investee that is controlled by the Group. The Group controls an investee when it is exposed, or has rights,
to variable returns from its involvement with the investee and has the ability to affect those returns through its power over
the investee.
Investments in subsidiaries are carried at cost less accumulated impairment losses in the Trust’s balance sheet. On disposal
of investments in subsidiaries, the difference between disposal proceeds and the carrying amounts of the investments are
recognised in profit or loss.
2.11 Borrowing Costs
Borrowing costs are capitalised as part of the cost of a qualifying asset if they are directly attributable to the acquisition,
construction or production of that asset. Capitalisation of borrowing costs commences when the activities to prepare the
asset for its intended use or sale are in progress and the expenditures and borrowing costs are incurred. Borrowing costs are
capitalised until the assets are substantially completed for their intended use or sale. All other borrowing costs are expensed
in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the
borrowing of funds.
