NOTES TO THE FINANCIAL STATEMENTS
3 Significant accounting policies (Cont’d)
3.8 Expenses
(i)
Property expenses
Property expenses are recognised on an accrual basis. Included in property expenses are the
Property Manager’s fee which is based on the applicable rate stipulated in Note 1.
(ii)
Management fees
Management fees are recognised on an accrual basis based on the applicable rate stipulated in
Note 1.
(iii)
Trust expenses
Trust expenses are recognised on an accrual basis. Included in trust expenses are the trustee’s fees
which are based on the applicable rate stipulated in Note 1.
(iv)
Borrowing costs
Finance costs comprise interest expense on borrowings, amortisation of borrowings and related
transaction costs which are recognised in the Statement of Total Return using the effective interest
method over the period of borrowings.
3.9 Tax
Tax expense comprises current and deferred tax. Current tax and deferred tax is recognised in the
Statement of Total Return except to the extent that it relates to items directly related to Unitholders’
funds, in which case it is recognised in Unitholders’ funds.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or
substantively enacted at the reporting date.
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax
is not recognised for:
– temporary differences on the initial recognition of assets or liabilities in a transaction that is not a
business combination and that affects neither accounting nor taxable profit or loss;
– temporary differences related to investment in subsidiary and jointly controlled entity to the extent
that the Group is able to control the timing of the reversal of the temporary difference and it is
probable that they will not reverse in the foreseeable future; and
– taxable temporary differences arising on the initial recognition of goodwill.
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