Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
SUMMARY OF SIGNIFICANT ACCOUNTING
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.
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
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
(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.
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
Shopping centre base rent and other property income
Amortisation of tenant allowances
Gross financing costs (excluding net fair value gain or loss on interest rate
hedges that do not qualify for hedge accounting)
TRADE AND OTHER RECEIVABLES
16 / Carindale Property Trust
Annual Report 2015