FRASERS HOSPITALITY TRUST ANNUAL REPORT 2015
157
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)
2.22 Taxes (cont’d)
(b)
Deferred tax (cont’d)
Deferred tax asset and deferred tax liabilities are offset if a legal enforceable right exists to set off current
income tax assets against current income tax liabilities and the deferred taxes relate to the same taxable
entity and the same tax authority.
Tax benefits acquired as part of a business combination, but not satisfying the criteria for separate
recognition at that date, would be recognised subsequently if new information about facts and
circumstances changed. The adjustment would either be treated as a reduction to goodwill (as long as it
does not exceed goodwill) if it is incurred during the measurement period or in the Statements of Total
Return.
FH-REIT has obtained the Tax Transparency Ruling and the Foreign Sourced Income Tax Exemption
Rulings (collectively, the “
Tax Rulings
”) from the Inland Revenue Authority of Singapore (“IRAS”) in
respect of Singapore taxation on certain income from the Singapore investment properties and from
the properties located overseas, respectively. In accordance with the Tax Rulings, the Singapore taxation
consequences for FH-REIT and that of the Stapled Securityholders are described below and in Note 9.
Taxable Income of FH-REIT
Except as detailed in Note 9, the REIT Trustee will be subject to Singapore income tax at the prevailing
corporate tax rate on Taxable Income of FH-REIT.
The current Singapore corporate tax rate is 17.0%.
(c)
Sales tax
Revenue, expenses and assets are recognised net of the amount of sales tax except:
–
Where the sales tax incurred on a purchase of assets or services is not recoverable from the
taxation authority, in which case the sales tax is recognised as part of the cost of acquisition of the
asset or as part of the expense item as applicable; and
–
Receivables and payables that are stated with the amount of sales tax included.
The net amount of sales tax recoverable from, or payable to, the taxation authority is included as part of
receivables or payables on the Statements of Financial Position.
2.23 Earnings per Stapled Security
The Stapled Group presents basic and diluted earnings per Stapled Security data for its Stapled Securities. Basic
earnings per Stapled Security is calculated by dividing the total return attributable to Stapled Securityholders
of the Stapled Group by the weighted average number of Stapled Securities outstanding during the financial
period.
No dilutive instruments were issued during the financial period. The diluted earnings per Stapled Security is the
same as basic earnings per Stapled Security.
2.24 Segment reporting
An operating segment is a component of the Stapled Group that engages in business activities from which it
may earn revenue and incur expenses, including revenues and expenses that relate to transactions with any of
the Stapled Group’s other components.
Management has determined the operating segments based on the reports reviewed by Chief Operating
Decision Makers (“CODMs”) that are used to make strategic decisions.
