IREIT Global
annual report 2014
For the reporting period from 1 November 2013 (date of constitution) to 31 December 2014
Notes to the
Financial Statements
3.
KEY SOURCES OF ESTIMATION UNCERTAINTY
In the application of the Group’s accounting policies, which are described in Note 2, the Manager is
required to make estimates and assumptions about the carrying amounts of assets and liabilities
that are not readily apparent from other sources. The estimates and associated assumptions are
based on historical experience and other factors that are considered to be relevant. Actual results
may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the estimate is revised if the revision
affects only that period or in the period of the revision and future periods if the revision affects
both current and future periods.
In the process of applying the Group’s accounting policies, the Manager is of the opinion that there
are no instances of application of judgments or the use of estimation techniques which may have
a significant effect on the amounts recognised in the financial statements other than valuation of
investment properties.
As described in Notes 2(d) and 7, investment properties are stated at fair value based on the
valuation performed by independent professional valuers. In determining the fair values of the
Properties, the valuers have used and considered the income capitalisation method and discounted
cash flows method, which involve the making of certain assumptions and estimates. The Manager
has exercised its judgment and is satisfied that the valuation methods, assumptions and estimates
are reflective of the prevailing conditions in Germany, where the investment properties are located.
Information about the assumptions, estimation, uncertainties that have significant effect on the
amounts recognised and the fair values of the investment properties are set out in Note 7 to the
financial statements.
4.
CASH AND CASH EQUIVALENTS
Group
IREIT
31 December
2014
31 December
2014
EUR’000
EUR’000
Cash at bank and in hand
12,277
2,156
