Independent Auditors’ Report to the Unitholders of K-REIT Asia
For the financial year ended 31 December 2008
To the members of K-REIT Asia
We have audited the accompanying financial statements of K-REIT Asia (the "Trust") set out on pages 105 to 131, which
comprise the Balance Sheet and Portfolio Statement as at 31 December 2008, the Statement of Total Return, Distribution
Statement, Statement of Movements in Unitholders’ Funds and Statement of Cash Flows of the Trust for the year then ended,
and a summary of significant accounting policies and other explanatory notes.
Responsibility of the Manager for the Financial Statements
The Manager is responsible for the preparation and fair presentation of these financial statements in accordance with the
recommendations of Statement of Recommended Accounting Practice 7 "Reporting Framework for Unit Trusts" issued by
the Institute of Certified Public Accountants of Singapore and the Singapore Financial Reporting Standards. This responsibility
includes devising and maintaining a system of internal accounting controls sufficient to provide a reasonable assurance that
assets are safeguarded against loss from unauthorised use or disposition; and transactions are properly authorised and that
they are recorded as necessary to permit the preparation of true and fair statement of total return and balance sheet and to
maintain accountability of assets; selecting and applying appropriate accounting policies; and making accounting estimates
that are reasonable in the circumstances.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the Trust’s preparation and fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the Trust’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by the Manager, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial position of the Trust as at
31 December 2008, the total return, distributable income, movements in Unitholders’ funds and cash flows for the year
ended on that date in accordance with the provision of Singapore Financial Reporting Standards and the recommendations of
Statement of Recommended Accounting Practice 7 "Reporting Framework for Unit Trusts" issued by the Institute of Certified
Public Accountants of Singapore.
Ernst & Young LLP
Public Accountants and
Certified Public Accountants
Singapore, 11 February 2009
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