SEO Version
ANNUAL REPORT 2011
The recoverable amount of an asset or CGU is the greater of its value in use and its fair
In assessing value in use, the estimated future cash fows are discounted to their prese
discount rate that refects current market assessments of the time value of money and
asset or CGU. For the purpose of impairment testing, assets that cannot be tested i
together into the smallest group of assets that generates cash infows from continui
independent of the cash infows of other assets or CGU.
Impairment losses are recognised in the Statement of Total Return. Impairment losses r
CGUs are allocated frst to reduce the carrying amount of any goodwill allocated to the
and then to reduce the carrying amounts of the other assets in the CGU (group of CG
Impairment losses recognised in prior periods are assessed at each reporting date
the loss has decreased or no longer exists. An impairment loss is reversed if there ha
estimates used to determine the recoverable amount. An impairment loss is reversed
the asset’s carrying amount does not exceed the carrying amount that would have b
depreciation or amortisation, if no impairment loss had been recognised.
(g)
Issue expenses
Issue expenses relate to expenses incurred in connection with the issue of Units. Such expens
against Unitholders’ funds.
(h)
Revenue recognition
Rental income from operating leases
Rental income receivable under operating leases from investment properties is recognised in
Return on a straight-line basis over the term of the lease, except where an alternative basis is
the pattern of benefts to be derived from the leased assets. Lease incentives granted are re
part of total rental to be received. Contingent rentals are recognised as income in the accoun
basis. No contingent rentals are recognised if there are uncertainties due to the possible return
(i)
Expenses
(i)
Property expenses
Property expenses consist of property management fee (using the applicable formula
lease management fee and reimbursable expenses payable to the Property Mana
expenses in relation to the investment properties.
Property expenses are recognised on an accrual basis.
(ii)
Manager’s fees
Manager’s fees are recognised on an accrual basis using the applicable formula stipula
(iii)
Trustee’s fees
Trustee’s fees are recognised on an accrual basis using the applicable formula stipulate
Sabana AR 2011 Financial V9.indd 83
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