Notes to the financial statements
Year ended 31 March 2016
3 Significant accounting policies (continued)
(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, adjusting
for the effects of all dilutive potential units arising from the conversion of the ECS issued by the Group.
(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.
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A-REIT ANNUAL REPORT
2015/2016
