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)
(b) Basis of consolidation
(Continued)
Consolidation of a subsidiary begins when IREIT obtains control over the subsidiary and
ceases when IREIT loses control of the subsidiary. Specifically, income and expenses of
a subsidiary acquired or disposed of during the period are included in the consolidated
statement of profit or loss and other comprehensive income from the date IREIT gains
control until the date when IREIT ceases to control the subsidiary.
Profit or loss and each component of the other comprehensive income are attributed to
the owners of IREIT and to the non-controlling interests. Total comprehensive income of
subsidiaries is attributed to the unitholders of IREIT and to the non-controlling interests
even if this results in the non-controlling interests having a deficit balance.
On acquisition, the assets and liabilities of the relevant subsidiaries are measured at their
fair values at the date of acquisition. Income and expenses of the subsidiaries acquired or
disposed of during the period are included in the consolidated statement of profit or loss
and other comprehensive income from the effective date of acquisition or disposal.
Where necessary, adjustments are made to the financial statements of the subsidiaries to
bring their accounting policies in line with those used by IREIT.
All intra-group assets and liabilities, income, expenses and cash flows are eliminated in full
on consolidation.
(c) Investments in subsidiaries
Investments in subsidiaries are included in IREIT’s statement of financial position at cost
less any identified impairment loss. Results of subsidiaries are accounted for by IREIT on
the basis of dividends received or receivable during the period.
(d) Investment properties
Investment properties are properties held to earn rentals and/or for capital appreciation.
Investment properties are measured initially at cost, including transaction costs. Subsequent
to initial recognition, investment properties are measured using the fair value model. Gains
and losses arising from changes in the fair value of investment property are included in
profit or loss in the period in which they arise.
