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)
(g) Leasing
Leases are classified as finance leases whenever the terms of the lease transfer substantially
all the risks and rewards of ownership to the lessee. All other leases are classified as
operating leases.
(h) Issue costs
Unit issue costs are transactions costs relating to issuance of units in IREIT which are
accounted for as a deduction from the proceeds raised to the extent they are incremental
costs directly attributable to the transaction that otherwise would have been avoided. Other
transaction costs are recognised as an expense in profit or loss.
(i) Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable for services
and facilities provided in the course of the ordinary activities, net of discounts.
Rental income under operating leases, except for contingent rentals, is recognised in the
profit or loss on a straight-line basis over the term of the relevant lease.
Contingent rentals, which include gross turnover rental, are recognised as income in the
accounting period on a receipt basis. No contingent rentals are recognised if there are
uncertainties due to the possible return of amounts received.
Service charges income, which consist of payments in respect of the operation of the
properties which are payable by the tenants, are recognised as income when the services
and facilities are provided.
Interest income from a financial asset is accrued on a time basis, by reference to the principal
outstanding and the relevant effective interest rate.
Dividend income from subsidiaries is recognised when IREIT’s right to receive payment
has been established.
(j) Foreign currencies
The functional currency (the currency of the primary economic environment in which the
entity operates) of IREIT and its subsidiaries is Euro.
