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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)
2.24 Segment reporting (cont’d)
CODMs include the Chief Executive Officer, the Chief Financial Officer, the Asset Managers and the Investment
Manager. CODMs review the Stapled Group’s internal reporting in order to assess performance and operations
of the Group. Management has determined the operating segments based on these assessments. The CODMs
consider the business segment from a geographic perspective as it is based on the management and internal
reporting structure.
Segment results and asset include items directly attributable to a segment as well as those that are allocated on
a reasonable basis. Unallocated items mainly comprise interest income, finance expenses, trust expenses and
non-capitalisable expenses in relation to IPO, asset acquisition and Private Placement.
Segment capital expenditure is the total costs incurred on investment properties during the financial period.
2.25 Contingencies
A contingent liability is:
(a)
a possible obligation that arises from past events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of
the Stapled Group; or
(b)
a present obligation that arises from past events but is not recognised because:
(i)
It is not probable that an outflow of resources embodying economic benefits will be required to
settle the obligation; or
(ii)
The amount of the obligation cannot be measured with sufficient reliability.
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only
by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of
the Stapled Group.
Contingent liabilities and assets are not recognised on the Statements of Financial Position of the Stapled Group,
except for contingent liabilities assumed in a business combination that are present obligations and which the
fair values can be reliably determined.
2.26 Derecognition of financial instruments
(a)
Financial assets
A financial asset is derecognised when the contractual rights to receive cash flow from the asset have
expired.
On derecognition of a financial asset in its entirety, the difference between the carrying amount and the
sum of the consideration received (including any new asset obtained less any new liability assumed) and
any cumulative gain or loss that has been recognised in other comprehensive income is recognised in
the Statements of Total Return.
(b)
Financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or
has expired.
Where an existing financial liability is replaced by another from the same lender on substantially different
terms, or the terms of an existing liability are substantially modified, such an exchange or modification is
treated as a derecognition of the original liability and the recognition of a new liability, and the difference
in the respective carrying amounts is recognised in the Statements of Total Return.
