N o t e s t o t h e f i n a n c i a l s t a t e m e n t s
Year ended 31 March 2015
3 Significant accounting policies (continued)
(n) Expenses
Property operating expenses
Property operating expenses are recognised on an accrual basis. Included in property operating expenses are fees
incurred under the Property Management Agreements and Lease Management Agreement which are based on the
applicable formula stipulated in Note 1(c) and Note 1(d) respectively.
Where the Group has the use of assets under operating leases, payments made under the leases are recognised in
the Statement of Total Return on a straight-line basis over the term of leases.
Management fees
Management fees are recognised on an accrual basis using the applicable formula stipulated in Note 1(b).
Trust expenses
Trust expenses are recognised on an accrual basis. Included in trust expenses is the Trustee fee which is based on the
applicable formula stipulated in Note 1(a).
(o) Finance income and finance costs
Finance income comprises interest income from financial institutions and investment in debt securities, fair value gains
on financial instruments measured at fair value through profit or loss and accretion adjustments on security deposits.
Interest income is recognised as it accrues in the Statement of Total Return, using the effective interest method.
Finance costs comprise interest expense on borrowings, amortisation of borrowing-related transaction costs, transaction
costs directly attributable to financial liabilities measured at fair value through profit or loss, fair value losses on financial
instruments measured at fair value through profit or loss, and accretion adjustments on security deposits.
Interest expense on borrowings, amortisation of borrowing-related transaction costs and accretion adjustments
on security deposits are recognised in the Statement of Total Return using the effective interest method over the
period of borrowings, except to the extent that they are capitalised as being directly attributable to the acquisition,
construction or production of an asset which necessarily takes a substantial period of time to be prepared for its
intended use or sale.
(p) Earnings per unit
The Group presents basic and diluted earnings per unit data for its units. Basic earnings per unit is calculated by
dividing the total return for the year attributable to Unitholders of the Trust by the weighted average number of units
outstanding during the year. Diluted earnings per unit is determined by adjusting the total return for the year after
tax attributable to Unitholders of the Trust and the weighted average number of units outstanding, for the effects
of all dilutive potential units arising from the conversion of the collateral loan and ECS.
(q) Operating segments
An operating segment is a component of the Group that engages in business activities from which it may earn
revenues and incur expenses. All operating segments’ operating results are reviewed regularly by the Chief Executive
Officer, the Group’s Chief Operating Decision Maker (“CODM”) to make decisions about resources to be allocated
to the segment and assess its performance, and for which discrete financial information is available.
ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT 2014/15
