Page 92 - SAR141018_Forterra AR 2013

FORTERRA
ANNUAL REPORT 2013
NOTES TO THE
FINANCIAL STATEMENTS
90
3 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(h) Non-current assets held for sale (Continued)
Impairment losses on initial classification as held for sale and subsequent gains or losses
on remeasurement are recognised in profit or loss. Gains are not recognised in excess of
any cumulative impairment loss.
(i) 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.
(j) 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.
Service charge income from rendering of services is recognised when the services are
performed.
(k) Expenses
(i) Trustee-Manager’s fees
Trustee-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.