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REPORTS
2 GOING CONCERN
The consolidatedfinancial statements of theHBTGrouphavebeenpreparedon agoing concernbasis notwithstanding
the deficiency in unitholders’ funds of $8,044,000, after having considered the cash flow projections of the HBT
Group for the next twelve months. The HBT Group is expected to have sufficient funds to meet its liabilities as and
when they fall due.
3 BASIS OF PREPARATION
3.1 Statement of compliance
The financial statements of the HBT Group are prepared in accordance with Singapore Financial Reporting Standards
("
FRS
"), the applicable requirements of the Business Trust Act, Chapter 31A of Singapore and the provisions of the
HBT Trust Deed.
The financial statements of the H-REIT Group and the Stapled Group are prepared in accordance with the Statement
of Recommended Accounting Practice ("
RAP
") 7 “Reporting Framework for Unit Trusts” issued by the Institute of
Singapore Chartered Accountants, the applicable requirements of the Code on Collective Investment Schemes
(the "
CIS Code
") issued by the Monetary Authority of Singapore ("
MAS
") and the provisions of the H-REIT Trust
Deed and the Stapling Deed. RAP 7 requires the accounting policies to generally comply with the recognition and
measurement principles of FRS.
3.2 Basis of measurement
The financial statements have been prepared on the historical cost basis except as described below.
3.3 Functional and presentation currency
The financial statements are presented in Singapore dollars, which is the functional currency of HBT and
H-REIT. All financial information presented in Singapore dollars has been rounded to the nearest thousand, unless
otherwise stated.
3.4 Use of estimates and judgements
The preparation of financial statements requires management to make judgements, estimates and assumptions
that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses.
Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimates are revised and in any future periods effected.
Information about critical judgements in applying accounting policies and assumptions and estimation uncertainties
that have the most significant effect on the amounts recognised in the financial statements are described in the
following notes:
• Note 5
– Valuation of investment properties
• Note 6
– Impairment of property, plant and equipment and prepaid land lease
• Note 26
– Acquisition of subsidiary (determination of fair value of assets and liabilities and
impairment of goodwill in business combinations)
NOTES TO THE FINANCIAL STATEMENTS
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