202
FRASERS HOSPITALITY TRUST ANNUAL REPORT 2015
NOTES TO THE FINANCIAL STATEMENTS
30 SEPTEMBER 2015
3.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
3.8
Impairment
Impairment of financial assets
The Company assesses at each balance sheet date whether there is any objective evidence that a financial asset
or group of financial assets is impaired.
If there is any objective evidence that the an impairment loss on loans and receivables carried at amortised cost
has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount
and the present value of estimated cash flow discounted at the financial asset’s original effective interest rate.
The carrying amount of the asset is reduced through the use of an allowance account. The amount of the loss
is recognised in the Statement of Comprehensive Income.
To determine whether there is objective evidence that an impairment loss on financial assets has been incurred,
the Company considers factors such as the probability of insolvency or significant financial difficulties of the
debtor and default or significant delay in payments.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related
objectively to an event occurring after the impairment was recognised, the previously recognised impairment
loss is reversed. Any subsequent reversal of an impairment loss is recognised in the Statement of Comprehensive
Income, to the extent that the carrying value of the asset does not exceed its amortised cost at the reversal date.
3.9
Derecognition of financial assets and liabilities
(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 Statement of Comprehensive Income.
(b)
Financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or has
expired. When 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 Statement of Comprehensive
Income.
4.
OTHER ITEMS OF EXPENSES
Year ended
30 September 2015
13 January* 2014 to
30 September 2014
$'000
$'000
Included in other items of expenses are:
Administrative expenses
–
Professional fees
(2)
(2)
–
Registration & filing fees
–
(2)
–
Incorporation fees
–
(3)
–
Trade subscription & publication
(2)
–
–
Miscellaneous expenses
(1)
–
* Date of incorporation
