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FINANCIALS
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3.9 Employee benefits
Short-term employee benefit obligations, including contributions to defined contribution pension plans, if any, are
measured on an undiscounted basis and are expensed as the related service is provided in the statement of total return.
A liability is recognised for the amount expected to be paid under short-term cash bonus where the Group has a
present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the
obligation can be estimated reliably.
3.10 Revenue recognition
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.
Contingent rentals, which include gross turnover rental, are recognised as income in the accounting period on a receipt
basis. No contingent rentals are recognised if there are uncertainties due to the possible return of amounts received.
Dividend income
Dividend income is recognised in the statement of total return on the date that the Trust’s right to receive payment is
established.
3.11 Finance income and finance expenses
Finance income comprises interest income on funds invested and derivative financial instruments. Interest income is
recognised as it accrues in the statement of total return, using the effective interest method.
Finance expenses comprises interest expense on borrowings and derivative financial instruments and amortisation
of loan acquisition expenses. All borrowing costs are recognised in the statement of total return using the effective
interest method.
3.12 Expenses
(i)
Property operating expenses
Property operating expenses are recognised on an accrual basis. Included in property operating expenses are
mainly property tax, maintenance and sinking fund contributions, leasing and upkeep expenses, marketing
expenses, administrative expenses and the property management fees and leasing commission which is based on
the applicable formula stipulated in Note 1(a).
(ii) Management fees
Management fees are recognised on an accrual basis based on the applicable formula stipulated in Note 1(b).
(iii) Trust expenses
Trust expenses are recognised on an accrual basis. Included in trust expenses is the Trustee’s fee which is described
in Note 1(d).
3.13 Income tax
Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in the statement of
total return except to the extent that it relates to a business combination, or items directly related to unitholders’ funds,
in which case it is recognised in unitholders’ funds.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or
substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.