CG malls europe - Commerz Real

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Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
2.12. Current and deferred income tax
The deferred tax is then calculated based on the respective temporary differences and tax consequences arising from
recovery through use and recovery through sale.
Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except
where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary
difference will not reverse in the foreseeable future.
2.13. Provisions
Provisions for legal claims are recognised when the Group has a present legal or constructive obligation as a result of
past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount can be
reliably estimated.
Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using
a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation.
The increase in the provision due to passage of time is recognised as finance cost.
Where the Group, as lessee, is contractually required to restore a leased property to an agreed condition prior to release
by a lessor, provision is made for such costs as they are identified.
2.14. Revenue recognition
Revenue includes rental income, service charges and management charges from properties
Rental income from operating leases is recognized in income on a straight-line basis over the lease term. When the
Fund provides incentives to its customers, the cost of incentives are recognized over the lease term, on a straight-line
basis, as a reduction of rental income.
Service and management charges are recognized on a gross basis in the accounting period in which the services are
rendered. When the Fund is acting as an agent, the commission rather than gross income is recorded as revenue.
2.15. Dividend distribution
Dividend distribution to the Company’s shareholders is recognised as a liability in the Group’s statement of financial position
in the period in which the dividends are approved.
2.16. Expenses
Expenses are recognised on an accrual basis in the period to which the expense can be contractually recovered, net of
any sales taxes.
Expenses are accounted for on an accrual basis and are charged to the consolidated statement of comprehensive income
in the period to which they relate with the exception of expenditures which can be directly attributed to the acquisition
of an asset which is then capitalised as a component of cost. Expenses arising from the disposal of assets will be deducted
from the proceeds of disposal.