3 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
3.11 Tax (continued)
A Qualifying Foreign Non-Individual Unitholder is one who is not a resident of Singapore for income tax
purposes and:
• who does not have a permanent establishment in Singapore; or
• who carries on any operation in Singapore through a permanent establishment in Singapore
where the funds used to acquire the Units are not obtained from that operation in Singapore.
The above tax transparency ruling does not apply to gains or profits from sale of real estate properties,
if considered to be trading gains derived from a trade or business carried on by the Trust. Tax on such
gains or profits will be assessed, in accordance with section 10(1)(a) of the Income Tax Act, Chapter
134 of Singapore and collected from the Trustee. Where the gains or profits are capital gains, they are
not subject to tax and the Trustee and the Manager may distribute the capital gains without tax being
deducted at source.
3.12 Earnings per Unit
The Group presents basic and diluted earnings per Unit (“EPU”) data for its Units. Basic EPU is calculated
by dividing the total return attributable to Unitholders of the Group by the weighted average number of
ordinary Units outstanding during the year. Diluted EPU is determined by adjusting the total return
attributable to Unitholders and the weighted average number of Units outstanding for the effects of all
dilutive potential Units.
3.13 Segment reporting
An operating segment is a component of the Group that engages in business activities from which it may
earn revenues and incur expenses, including revenues and expenses that relate to transactions with
any of the Group’s other components. All operating segments’ operating results are reviewed regularly
by the Manager’s CEO (the chief operating decision maker) to make decisions about resources to be
allocated to the segment and to assess its performance, and for which discrete financial information
is available.
Segment results that are reported to the Manager’s CEO include items directly attributable to a segment
as well as those that can be allocated on a reasonable basis.
3.14 New standards and interpretations not adopted
A number of new standards, amendments to standards and interpretations are effective for annual periods
beginning after 1 January 2014, and have not been applied in preparing these financial statements.
The initial application of these new standards, amendments to standards and interpretations is not
expected to have a significant effect on the financial statements of the Group and the Trust.
Year ended 31 December 2014
NOTES TO THE FINANCIAL STATEMENTS
SABANA REIT
|
ANNUAL REPORT 2014
112
