Page 99 - ar2012

annual report 2012
97
Notes to the Financial Statements
3 Significant accounting policies (cont’d)
3.6 Unitholders’ funds
Unitholders’ funds of the Stapled Group comprise unitholders’ funds of HBT and the H-REIT
Group. Unitholders’ funds are classifed as equity.
Issue expenses relate to expenses incurred in connection with the issue of Stapled Securities.
The expenses are deducted directly against the unitholders’ funds.
3.7 Revenue
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. Lease incentives granted are recognised
as an integral part of the total rental income to be received. Variable rentals are recognised as
income in the accounting period in which they are earned and the amount can be measured
reliably. 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.
3.8 Expenses
Property expenses
Property expenses consist of insurance, property tax and other property outgoings in relation to
investment properties where such expenses are the responsibility of the H-REIT Group.
Property expenses are recognised on an accrual basis.
H-REIT Manager’s management fees
H-REIT Manager’s management fees are recognised on an accrual basis using the applicable
formula, as described in Note 1(ii).
H-REIT Trustee’s fee
The H-REIT Trustee’s fee is recognised on an accrual basis using the applicable formula, as
described in Note 1(iii).
3.9 Finance income and fnance costs
Finance income comprises interest income on funds invested, net foreign currency gains and gains
on hedging instruments that are recognised in the statement of total return or income statement (as
the case may be). Interest income is recognised as it accrues, using the effective interest method.