NOTES TO THE
FINANCIAL STATEMENTS
Year ended 31 December 2014
3
SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
3.5 Impairment (cont’d)
Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the
loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates
used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s
carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or
amortisation, if no impairment loss had been recognised.
3.6 Revenue recognition
(i)
Rental income from operating leases
Rental income receivable under operating leases is recognised in the Statement of Total Return on a
straight-line basis over the term of the lease, except where an alternative basis is more representative of
the pattern of benefits to be derived from the leased assets. Lease incentives granted are recognised as an
integral part of the total rental to be received over the term of the lease. Contingent rentals, which include
gross turnover rental, are recognised as income in the accounting period on a receipt basis.
(ii)
Interest income
Interest income is recognised on an accrual basis, using the effective interest method.
(iii)
Dividend income
Dividend income is recognised in the Statement of Total Return on the date the Trust’s right to receive
payment is established.
3.7 Expenses
(i)
Property expenses
Property expenses are recognised on an accrual basis. Where the Group has the use of assets under
operating leases, payments made under the leases are recognised in the Statement of Total Return on a
straight-line basis over the term of leases.
(ii)
Management fees
Management fees comprise of the Manager’s base fees, performance fees and asset management fees
payable to the asset managers of the Japan properties.
Manager’s base fees and performance fees are recognised on an accrual basis based on the applicable
formula stipulated in Note 1(B). Where applicable, Manager’s base fee and performance fee paid and
payable in units is recognised as an expense in the Statement of Total Return and a corresponding increase
in Unitholders’ funds.
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