CapitaLand Investment Limited - Annual Report 2021

265 CapitaLand Investment Limited 264 Annual Report 2021 Notes to the Financial Statements Notes to the Financial Statements 37 OPERATING SEGMENTS (continued) Geographical Information Singapore China Other developed markets 1 Other emerging markets 2 Group $’M $’M $’M $’M $’M 2021 External revenue 620 442 985 5 246 2,293 EBITDA 4 803 699 896 71 2,469 Non-current assets 3 9,276 9,736 9,087 3,033 31,132 Total assets 11,119 12,911 10,043 6 3,573 37,646 2020 External revenue 580 363 816 5 224 1,983 EBITDA 4 420 (101) (307) (45) (33) Non-current assets 3 9,518 9,336 8,788 6 3,053 30,695 Total assets 13,088 11,524 10,008 3,603 38,223 1 Includes United Kingdom, France, Germany, Spain, Belgium, Ireland, Japan, South Korea, United States of America, Australia and New Zealand. 2 Other emerging markets refers to Asia, but excludes Singapore, China, Hong Kong, Japan and South Korea. 3 Non-current assets comprised property, plant and equipment, intangible assets, investment properties, investment in associates and joint ventures. 4 Fair value gains of $255 million in 2021 included in EBITDA (2020: loss of $698 million). 5 Includes revenue from United States of America of $440 million (2020: $356 million), Japan of $124 million (2020: $163 million) and Australia of $196 million (2020: $130 million). 6 Includes non-current assets from United States of America of $3,132 million (2020: $2,177 million), Japan of $1,600 million (2020: $2,748 million) and Australia of $1,620 million (2020: $1,579 million). 38 SUBSEQUENT EVENTS 1) On 3 February 2022, the Group announced the establishment of a development venture, Student Accommodation Development Venture (SAVE), that has approximately $204 million in committed equity to develop student accommodation assets in USA. The Group will manage the venture and hold a 20% stake in the joint venture. 2) On 16 February 2022, the Group entered into four conditional sale and purchase agreements to acquire the trust beneficial interests in a portfolio of four turnkey properties in Osaka, comprising three rental housing properties and one student accommodation property, for a total consideration of approximately $77.1 million. The acquisition of the student accommodation property is expected to complete in March 2022. The acquisition of the three rental housing properties is expected to complete between fourth quarter of 2022 to the first quarter of 2023. 3) Russia’s invasion of Ukraine on 24 February 2022 is expected to cause further volatility in the global economy and financial markets, and the increased geopolitical tensions are set to exacerbate concerns over inflation and supply chain bottlenecks. This has created a high level of uncertainty to near-term global economic prospects and may impact the Group’s operations subsequent to the financial year end, the extent of which will depend on how the Russia-Ukraine conflict evolves. The Group will closely monitor the developments. 4) On 7 March 2022, the Group entered into a conditional sale and purchase agreement to acquire the trust beneficial interest in a turnkey rental housing property in Fukuoka for a total consideration of approximately $47.9 million. The acquisition of the rental housing property is expected to complete in the second quarter of 2023. 39 ADOPTION OF NEW ACCOUNTING STANDARDS The Group has applied Interest Rate Benchmark Reform – Phase 2 (Amendments to SFRS(I) 9, SFRS(I) 1-39 and SFRS(I) 7, SFRS(I) 4 and SFRS(I) 16 which is effective for the annual period beginning on 1 January 2021. The Group applied the Phase 2 amendments retrospectively. As the Group has no transactions for which the benchmark rate had been replaced with an alternative benchmark rate as at 31 December 2020, there is no impact on opening equity balances as a result of retrospective application. Specific policies applicable from 1 January 2021 for interest rate benchmark reform The Phase 2 amendments provide practical relief from certain requirements in SFRS(I) Standards. These reliefs relate tomodifications of financial instruments and lease contracts or hedging relationships triggered by a replacement of a benchmark interest rate in a contract with a new alternative benchmark rate. If the basis for determining the contractual cash flows of a financial asset or financial liability measured at amortised cost changes as a result of interest rate benchmark reform, then the Group updates the effective interest rate of the financial asset of financial liability to reflect the change that is required by the reform. A change in the basis for determining the contractual cash flows is required by interest rate benchmark reform if the following conditions are met: – the change is necessary as a direct consequence of the reform; and – the new basis for determining the contractual cash flows is economically equivalent to the previous basis – i.e. the basis immediately before the change.