SEO Version
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Notes to the Financial Statements
3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(h)
Employee benefits (Continued)
(iii) Unit-based payment transactions
Equity-settled unit-based payments are measured at fair value (excluding the effect of non-market based
vesting conditions) at the grant date. The fair value determined at the grant date of the equity-settled
unit-based payments is expensed on a straight-line basis over the vesting period, based on the Trust’s
estimate of the units that will eventually vest and adjusted for the effect of non market-based vesting
conditions.
Fair value of unit options is measured using the Binomial option pricing method. The expected life used
has been adjusted, based on management’s best estimate, for effects of behavioural considerations.
(i)
Revenue recognition
Rental income receivable under operating leases is recognised in profit or loss 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 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.
(j)
Expenses
(i)
Trustee’s fees and manager’s fees
Trustee’s and manager’s fees are recognised on an accrual basis based on the applicable formula
stipulated in Note 1.
(ii)
Property and administrative expenses
Property and administrative expenses are recognised on an accrual basis.
(k)
Finance income and finance costs
Finance income comprises interest income on funds invested (including available-for-sale financial assets),
dividend income and gains on the disposal of available-for-sale financial assets. Interest income is recognised
as it accrues in profit or loss, using the effective interest method. Dividend income is recognised in profit or loss
on the date that the Group’s right to receive payment is established, which in the case of quoted securities is
normally the ex-dividend date.
Finance costs comprise interest expense on borrowings and amortisation of transaction costs. Borrowing costs
that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognised
in profit or loss using the effective interest method.
SAR1112034_TCT_AR_().indb 78
3/23/2012
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