IREIT Global
annual report 2014
For the reporting period from 1 November 2013 (date of constitution) to 31 December 2014
Notes to the
Financial Statements
2.
SIGNIFICANT ACCOUNTING POLICIES
(Continued)
(a) Basis of preparation of financial statements
(Continued)
NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS
(Continued)
Equity Method in Separate Financial Statements
The amendments allow an entity to account for investments in subsidiaries, joint ventures
and associates in its separate financial statements:
•
at cost;
•
in accordance with IFRS 9 Financial Instruments (or IAS 39 Financial Instruments:
recognition and measurement for entities that have not yet adopted IFRS 9); or
•
using the equity method as described in IAS 28 Investments in Associates and Joint
Ventures.
The accounting option must be applied by category of investments.The amendments also
clarify that when a parent ceases to be an investment entity, or becomes an investment
entity, it shall account for the change from the date when the change in status occurred.
Consequential amendments were also made to various standards as a result of these
new/revised standards.
The management anticipates that the adoption of the above IFRSs, and amendments to IFRS
in future periods will not have a material impact on the financial statements of the Group
in the period of their initial adoption.
(b) Basis of consolidation
The consolidated financial statements incorporate the financial statements of IREIT and
entities controlled by IREIT (“subsidiaries”). Control is achieved when IREIT:
•
has power over the investee;
•
is exposed, or has rights, to variable returns from its involvement with the investee; and
•
has the ability to use its power to affect its returns.
IREIT reassesses whether or not it controls an investee if facts and circumstances indicate
that there are changes to one or more of the three elements of control listed above.
