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Notes to the Financial Statements

FOR THE YEAR ENDED 30 JUNE 2015

NOTE 2

SUMMARY OF SIGNIFICANT ACCOUNTING

POLICIES (continued)

i) Financial assets

Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at bank

and on hand and short term deposits with an original maturity of 90

days or less that are readily convertible to known amounts of cash and

which are subject to an insignificant risk of changes in value.

For the purposes of the cash flow statement, cash and cash equivalents

includes cash on hand and at bank, short term money market deposits

and bank accepted bills of exchange readily convertible to cash, net of

bank overdrafts and short term loans. Bank overdrafts are carried at

the principal amount. Interest is charged as an expense as it accrues.

Receivables

Trade and sundry debtors are carried at original invoice amount, less

provision for doubtful debts, and are due within 30 days. Collectability

of trade and sundry receivables is reviewed on an ongoing basis.

Individual debts that are determined to be uncollectible are written

off when identified. An impairment provision for doubtful debts is

recognised when there is evidence that the Trust will not be able to

collect the receivable.

ii) Financial liabilities

Payables

Trade and other payables are carried at amortised cost and due to their

short term nature they are not discounted. They represent liabilities for

goods and services provided to the Trust prior to the end of the financial

year that are unpaid and arise when the Trust becomes obliged to make

future payments in respect of the purchase of these goods and services.

The amounts are unsecured and are usually paid within 60 days.

Interest bearing liabilities

Interest bearing liabilities are recognised initially at the fair value of the

consideration received less any directly attributable transaction costs.

Subsequent to initial recognition, interest bearing liabilities are recorded

at amortised cost using the effective interest rate method.

Interest bearing liabilities are classified as current liabilities where the

liability has been drawn under a financing facility which expires within

one year. Amounts drawn under financing facilities which expire after

one year are classified as non current.

Financing costs for interest bearing liabilities are recognised as an

expense on an accruals basis.

The fair value of the Trust’s unquoted instruments, loans from banks

and finance leases (as disclosed in Note 19) is estimated by discounting

future cash flows using rates that approximate the Trust’s borrowing

rate as at 30 June 2015 for debt with similar maturity, credit risk and

terms.

(i) Recoverable amount of assets

At each reporting date, the Responsible Entity assesses whether there

is any indication that an asset may be impaired. Where an indicator of

the impairment exists, the Responsible Entity makes an estimate of the

recoverable amount. Where the carrying amount of an asset exceeds

its recoverable amount the asset is considered impaired and is written

down to its recoverable amount.

(j) Earnings per unit

Basic earnings per unit is calculated as net profit attributable to

members of the Trust divided by the weighted average number of

ordinary units. Diluted earnings per unit is calculated as net profit

attributable to members of the Trust divided by the weighted average

number of ordinary units and dilutive potential ordinary units.

(k) Rounding

In accordance with ASIC Class Order 98/0100, the amounts shown

in the financial report have, unless otherwise indicated, been rounded

to the nearest thousand dollars. Amounts shown as 0.0 represent

amounts less than $500 that have been rounded down.

30 Jun 15

30 Jun 14

$’000

$’000

NOTE 3a

PROPERTY REVENUE

Shopping centre base rent and other property income

56,701

54,618

Amortisation of tenant allowances

(1,215)

(1,276)

55,486

53,342

NOTE 3b

FINANCING COSTS

Gross financing costs (excluding net fair value gain or loss on interest rate

hedges that do not qualify for hedge accounting)

(13,164)

(13,851)

(13,164)

(13,851)

NOTE 4

TRADE AND OTHER RECEIVABLES

Trade receivables

652

649

Other debtors

1,936

1,647

2,588

2,296

16 / Carindale Property Trust

Annual Report 2015