146
FRASERS HOSPITALITY TRUST ANNUAL REPORT 2015
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL PERIOD FROM 20 JUNE 2014 (DATE OF CONSTITUTION) TO 30 SEPTEMBER 2015
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.1
Basis of preparation (cont’d)
(b)
Critical judgements made in applying accounting policies (cont’d)
Income taxes
The Stapled Group has exposure to income taxes in numerous jurisdictions. Significant assumptions
are required in determining the group-wide provision for income taxes. The ultimate determination of
taxability of income and deductibility of expenses from certain transactions are uncertain during the
course of business. The tax computations arising from business combinations would also be subjected
to uncertainty and final assessment by tax authorities. The Stapled Group recognises the liabilities for
expected tax issues based on estimates of whether additional taxes will be due. Where the final tax
outcome of these matters is different from the amounts that were initially recognised, such differences
will impact the income tax and deferred tax provisions in the period in which such determination is made.
The carrying amounts of provision for taxation, deferred tax assets and liabilities are as disclosed in the
Statements of Financial Position.
The tax computation of subsidiaries newly acquired through business combinations would also be
subject to uncertainty and formal assessment by tax authorities.
2.2 Changes in accounting policies
In the current financial period, the Stapled Group has adopted all the new and revised standards which are
effective for annual financial periods beginning on or after 20 June 2014. The adoption of these standards did
not have any significant effect on the financial performance or position of the Stapled Group.
2.3 Standards issued but not yet effective
The Stapled Group has not adopted the following standards and interpretations issued but not yet effective:
Description
Effective for annual
periods beginning
on or after
Amendments to FRS 19
Defined Benefits Plans: Employee Contributions
1 July 2014
Improvements to FRS(s) (January 2014)
(a)
Amendments to FRS 102
Share Based Payment
1 July 2014
(b)
Amendments to FRS 103
Business Combinations
1 July 2014
(c)
Amendments to FRS 108
Operating Segments
1 July 2014
(d)
Amendments to FRS 16
Property, Plant and Equipment and
FRS 38
Intangible Assets
1 July 2014
(e)
Amendments to FRS 24
Related Party Disclosures
1 July 2014
Improvements to FRS(s) (February 2014)
(a)
Amendments to FRS 103
Business Combinations
1 July 2014
(b)
Amendments to FRS 113
Fair Value Measurement
1 July 2014
(c)
Amendments to FRS 40
Investment Property
1 July 2014
Improvements to FRS(s) (November 2014)
(a)
FRS 107
Financial Instruments: Disclosures
1 January 2016
(b)
FRS 19
Employee Benefits
1 January 2016
(c)
FRS 34
Interim Financial Reporting
1 January 2016
Amendments to FRS 16 and FRS 38
Clarification of Acceptable Methods of Depreciation
and Amortisation
1 January 2016
Amendments to FRS 1:
Disclosure Initiative
1 January 2016
FRS 115
Revenue from Contracts with Customers
1 January 2017
FRS 109
Financial Instruments
1 January 2018
The Management of the REIT Manager and the Trustee-Manager expect that the adoption of the standards
above will have no material impact on the financial statements in the period of initial application.
