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Annual Report 2015
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
Lease payments
Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of the lease.
HBT Trustee-Manager’s fees
HBT Trustee-Manager’s fees are recognised on an accrual basis using the applicable formula, as described in Note 1(i).
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 and post-employment benefit. Short-term employee benefit
obligations 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.
Post-employee benefit relates to defined contribution plan. Obligations for contributions to defined contribution plans
are recognised as an expense in profit or loss in the periods during which related services are rendered by employees.
3.12 Finance income and finance cost
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 statement of comprehensive income (as the case
may be). Interest income is recognised as it accrues, using the effective interest method.
NOTES TO THE FINANCIAL STATEMENTS
