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)
(j) Foreign currencies
(Continued)
In preparing the financial statements of each individual entity within the Group, transactions
in currencies other than Euro are recorded in Euro at the rates of exchange prevailing on the
dates of the transactions. At the end of each reporting period, monetary items denominated
in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary
items that are measured in terms of historical cost in a foreign currency are not retranslated.
Exchange differences arising on the settlement of monetary items, and on the translation of
monetary items, are recognised in profit or loss in the period in which they arise.
(k) Impairment of investments in subsidiaries
At the end of the reporting period, IREIT reviews the carrying amounts of its investments
in each of the subsidiaries to determine whether there is any indication of impairment
loss. If any such indication exists, the recoverable amount of investments in subsidiaries is
estimated in order to determine the extent of the impairment loss, if any. If the recoverable
amount of investments in subsidiaries is estimated to be less than its carrying amount, the
carrying amount of investments in subsidiaries is reduced to its recoverable amount. An
impairment loss is recognised as an expense immediately.
Where an impairment loss subsequently reverses, the carrying amount of investments in
subsidiaries is increased to the revised estimate of its recoverable amount, but so that the
increased carrying amount does not exceed the carrying amount that would have been
determined had no impairment loss been recognised for investments in subsidiaries in prior
years. A reversal of an impairment loss is recognised as income immediately.
(l) Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs
from “profit before taxation” as reported in the statement of profit or loss and other
comprehensive income because it excludes items of income and expense that are taxable or
deductible in other years and it further excludes items that are not taxable or deductible.
The Group’s liability for current tax is calculated using tax rates that have been enacted or
substantively enacted by the end of the reporting period.
