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Notes to the Financial Statements





(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 –

Investment Entities;

– 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.




(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

not depreciated.

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