Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
BASIS OF PREPARATION OF THE YEAR END
(a) Corporate information
This financial report of Carindale Property Trust (Trust) for the year
ended 30 June 2015 was approved in accordance with a resolution of
the Board of Directors of Scentre Management Limited, as responsible
entity of the Trust (Responsible Entity) on 25 August 2015.
The nature of the operations and principal activities of Carindale
Property Trust are described in the Directors’ Report.
(b) Statement of Compliance
This financial report complies with Australian Accounting Standards
and International Financial Reporting Standards issued by the
International Accounting Standards Board. The accounting policies
adopted are consistent with those of the previous financial year except
that the Trust has adopted the following new or amended standards
which became applicable on 1 July 2014.
– AASB 1031 Materiality;
– AASB 2012–3 Amendments to Australian Accounting Standards –
Offsetting Financial Assets and Financial Liabilities;
– AASB 2013–3 Amendments to AASB 136 – Recoverable Amount
Disclosures for Non–Financial Assets;
– AASB 2013–4 Amendments to Australian Accounting Standards –
Novation of Derivatives and Continuation of Hedge Accounting;
– AASB 2013–5 Amendments to Australian Accounting Standards –
– AASB 2013–9 Amendments to Australian Accounting Standards –
Conceptual Framework, Materiality and Financial Instruments; and
– AASB 2014–1 Amendments to Australian Accounting Standards –
Part A: Annual Improvements 2010–2012 and 2011–2013 Cycles.
The adoption of these new and amended standards did not have a
significant impact on the Trust’s results in the current period.
Certain Australian Accounting Standards and Interpretations have
recently been issued or amended but are not yet effective and have not
been adopted by the Trust for the annual reporting period ended 30
June 2015. The impact of these new standards (to the extent relevant
to the Trust) and interpretations is as follows:
– AASB 9 Financial Instruments (effective from 1 January 2018)
This standard includes requirements to improve and simplify the
approach for classification and measurement of financial assets
compared with the requirements of AASB 139 Financial Instruments:
Recognition and Measurement.
– AASB 15 Revenue from Contracts with Customers (expected to be
effective from 1 January 2018)
This standard determines the principles that an entity shall apply to
report useful information to users of financial statements about the
nature, amount, timing, and uncertainty of revenue and cash flows
arising from a contract with a customer.
– AASB2015–2 Amendments to Australian Accounting Standards
– Disclosure Initiative: Amendments to AASB101 (effective from
1 January 2016)
The standard makes amendments to AASB101 – Presentation of
Financial Statements arising from the IASB's Disclosure Initiative
project. The amendments are designed to encourage companies
to apply professional judgment in determining what information to
disclose in the financial statements.
– AASB2015–3 Amendments to Australian Accounting Standards
arising from the Withdrawal of AASB1031 Materiality (effective from
1 July 2015)
This standard completes the AASB's project to remove Australian
guidance on materiality from Australian Accounting Standards.
The Responsible Entity is currently assessing the impact of these
recently issued or amended standards.
(c) Basis of Accounting
The financial report is a general purpose financial report, which has
been prepared in accordance with the requirements of the Corporations
Act 2001 and Australian Accounting Standards. The financial report
has also been prepared on a historical cost basis, except for investment
properties and derivative financial instruments that have been
measured at fair value.
Investment property is held jointly as tenants in common. The
proportionate share of the income and expenditure and of the assets
and liabilities of property interests are held as tenants in common and
have been included in their respective classifications in this financial
This financial report is presented in Australian dollars.
(d) Significant accounting judgements, estimates and
The preparation of the financial report requires management to make
judgements, estimates and assumptions. Management continually
evaluates its judgements and estimates in relation to assets, liabilities,
contingent liabilities, revenue and expenses. Management bases its
judgements and estimates on historical experience and other various
factors it believes to be reasonable under the circumstances, the
results of which form the basis of the carrying values of assets and
liabilities that are not readily apparent from other sources.
Further details of the nature of these assumptions and conditions may
be found in the relevant notes to the financial statements, in particular,
Note 2: Summary of significant accounting policies, Note 7: Investment
properties and Note 19: Fair value of financial assets and liabilities.
Actual results may differ from these estimates under different
assumptions and conditions and may materially affect the Trust’s
financial results or the financial position in future periods.
SUMMARY OF SIGNIFICANT ACCOUNTING
(a) Investment properties
The Trust’s investment properties include shopping centre investments
and development projects.
i) Shopping centre investment
The Trust’s shopping centre investment comprises of freehold and
leasehold land, buildings and leasehold improvements.
Land and buildings are considered as having the function of an
investment and therefore are regarded as a composite asset, the
overall value of which is influenced by many factors, the most
prominent being income yield, rather than by the diminution in value of
the building content due to effluxion of time. Accordingly, the buildings
and all components thereof, including integral plant and equipment, are
Initially, the shopping centre investment is measured at cost including
transaction costs. Subsequent to initial recognition, the Trust’s
shopping centre investment is stated at fair value. Gains and losses
arising from changes in the fair value of its shopping centre investment
are included in the statement of comprehensive income in the year in
which they arise. Any gains or losses on the sale of a shopping centre
investment are recognised in the statement of comprehensive income
in the year of sale. The shopping centre investment carrying amount
includes components relating to lease incentives, leasing costs and
receivables on rental income that have been recorded on a straight line
At each reporting date, the carrying value of the shopping centre
investment is assessed by the Directors and where the carrying value
differs materially from the Directors’ assessment of fair value, an
adjustment to the carrying value is recorded as appropriate.
14 / Carindale Property Trust
Annual Report 2015