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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)
2.18 Distribution policy
Distributions of FHT comprise distributions from FH-REIT and FH-BT.
FH-REIT’s distribution policy is to distribute 100% of the Distributable Income (“DI”) to the Stapled Securityholders
for the period from the Listing Date (14 July 2014) to 30 September 2015, and at least 90% of the DI thereafter.
In the event that FH-BT becomes active and profitable, FH-BT’s distribution policy will be to distribute as much
of its income as practicable, and the declaration and payment of distributions by FH-BT will be at the sole
discretion of the Board of Directors of the Trustee-Manager.
Distributions are made on a semi-annual basis, with the amount calculated as at 31 March and 30 September
each year for the six-month period ending on each of the said dates. In accordance with the Trust Deeds, the
Managers are required to pay distributions within 90 days of the end of each distribution period. Distributions,
when paid, will be in Singapore dollars.
For the financial period from Listing Date to 31 March 2015, the distribution was paid to Stapled Securityholders
on 29 June 2015.
2.19 Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Stapled Group
and the revenue can be reliably measured, regardless of when the payment is made. Revenue is measured at the
fair value of consideration received or receivable, taking into account contractually defined terms of payment
and excluding taxes or duties.
(a)
Master lease rental income from operating leases
Rental income receivable under operating leases is recognised in the Statements of Total Return on a
straight-line basis over the term of the lease, except where an alternative basis is more representative of
the pattern of benefits to be derived from the leased assets. The aggregate costs of incentives provided to
leases are recognised as a reduction of rental income over the lease term on a straight-line basis. Variable
rent, which comprises gross turnover rental, is recognised as income in the accounting period on an
accrual basis in the period in which it is earned. No variable rent is recognised if there are uncertainties
that may result in the possible reversal of amounts recognised.
Currently, all master lease rental agreements are entered into with related parties.
(b)
Dividend and distribution income
Dividend and distribution income is recognised in the Statements of Total Return on the date when the
right to receive payment is established.
(c)
Finance income
Finance income relates to interest income, and is recognised as it accrues in the Statements of Total
Return, using the effective interest method.
