FRASERS HOSPITALITY TRUST ANNUAL REPORT 2015
147
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)
2.4 Basis of consolidation and business combinations
(a)
Stapling
Where entities enter into a stapling arrangement, the stapling arrangement is accounted for as a business
combination under the acquisition method.
(b)
Subsidiaries
Subsidiaries (including special purpose entities) are entities over which the Stapled Group has the power
to govern the financial and operating policies so as to obtain benefits from its activities. The Stapled
Group generally has such power when it directly or indirectly, holds more than 50% of the issued share
capital, or controls more than half of the voting power, or controls the composition of the board of
directors.
(c)
Consolidation
The financial year of FH-REIT Group and FH-BT ends on 30 September unless otherwise stated. The
consolidated financial statements incorporate the financial statements of the Stapled Group made
up to 30 September. The financial statements of FH-REIT’s subsidiaries are prepared using consistent
accounting policies. Adjustment are made to any dissimilar material accounting policies to conform
to the Stapled Group’s significant accounting policies. A list of the FH-REIT’s subsidiaries is shown in
Note 22.
All intra-group balances, income and expenses and unrealised gains and losses resulting from intra-
group transactions and dividends are eliminated in full.
Subsidiaries are consolidated from the date of acquisition, being the date on which the Stapled Group
obtains control, and continue to be consolidated until the date that such control ceases.
