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CDL
HOSPITALITY TRUSTS
3 SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
3.10 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.
Hotel income and food and beverage revenue
Revenue from hotel operations is recognised when the relevant rooms and services are rendered to the
customers.
3.11 Expenses
Property expenses
Property expenses in relation to investment properties where such expenses are the responsibility of the
H-REIT Group are recognised on an accrual basis. These expenses consist of insurance, property tax and
other property outgoings.
Lease payments
Payments made under operating leases are recognised in statement of comprehensive income on a straight-
line basis over the term of the lease.
HBT Trustee-Manager’s management fees
HBT Trustee-Manager’s management fees are recognised on an accrual basis using the applicable formula,
as described in Note 1(ii).
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).
Staff costs
Staff costs consist of short-term employee benefit that are measured on an undiscounted basis and
are expensed as the related service is provided. A liability is recognised for the amount expected to be
paid under short-term cash bonus or profit-sharing plans if 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.
NOTES TO THE FINANCIAL STATEMENTS
