FRASERS HOSPITALITY TRUST ANNUAL REPORT 2015
155
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)
2.19 Revenue (cont’d)
(d)
Payment top-up
Payment top-up is drawndown when certain criteria are met as defined in the payment top-up deed and
recognised as and when it is received.
2.20 Expenses
(a)
Property operating expenses
Property operating expenses are recognised on an accrual basis in the period that expenses are incurred.
(b)
REIT Manager’s fees
Fees paid or payable to the REIT Manager are recognised on an accrual basis based on the applicable
formula as set out in Note 1(a).
During the current financial period, the REIT-Manager has elected to receive 100% of the Base and
Performance Fees in the form of Stapled Securities.
(c)
Trust expenses
Trust expenses are recognised on an accrual basis. Included in trust expenses are the REIT Trustee’s fees,
MIT and MIT Sub-Trustee’s fees, TMK Trustee’s fees, Malaysian Bond Trustee’s fees and Trustee-Manager’s
trustee fees (when FH-BT becomes active) which are based on the applicable formulae as set out in
Notes 1(e), (f), (g), (h) and (j)(ii).
(d)
Trustee-Manager’s fees
Fees paid or payable to the Trustee-Manager are recognised on an accrual basis based on the applicable
formula as set out in Note 1(j)(i). FH-BT remained dormant in the current financial period and there are no
fees paid/payable to the Trustee-Manager.
2.21 Borrowing costs
Finance costs consist of interest expense on borrowings and debt upfront costs. Interest expense is recognised
in Statements of Total Return in the period it occurs using the effective interest method. Debt upfront costs are
amortised using the straight line method over the tenure of the underlying bank loan.
