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Download Full Report - Ascendas REIT

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Notes to the financial statements<br />

The Trustee and the Manager will deduct tax at the reduced concessionary rate of 10% from distributions<br />

made out of A-<strong>REIT</strong>’s taxable income that is not taxed at A-<strong>REIT</strong>’s level to beneficial Unitholders who are<br />

qualifying foreign non-individual investors. A qualifying foreign non-individual investor is one who is not<br />

a resident of Singapore for income tax purposes and:<br />

(i)<br />

(ii)<br />

Who does not have a permanent establishment in Singapore; or<br />

Who carries on any operation in Singapore through a permanent establishment in Singapore,<br />

where the funds used to acquire the units in A-<strong>REIT</strong> are not obtained from that operation.<br />

The reduced concessionary tax rate of 10% will expire for distributions made after 31 March 2015 unless<br />

this concession is extended.<br />

(g)<br />

Distribution policy<br />

A-<strong>REIT</strong>’s distribution policy is to distribute 100% of its distributable income to Unitholders, other than<br />

gains on the sale of properties that are determined by IRAS to be trading gains, and unrealised surplus on<br />

revaluation of investment properties. Distributions are usually made on a quarterly basis at the discretion<br />

of the Manager.<br />

(h)<br />

Issue expenses<br />

Issue expenses represent expenses incurred in the issuance and placement of additional units in A-<strong>REIT</strong>.<br />

The expenses are deducted directly against Unitholders’ funds, as stipulated in the Trust Deed.<br />

(i)<br />

Revenue recognition<br />

Rental income from operating leases<br />

Rental income receivable under operating leases is recognised on a straight-line basis over the term<br />

of the lease, except where an alternative basis is more representative of the pattern of benefits to be<br />

derived from the leased assets. Lease incentives granted are recognised as an integral part of total rental<br />

income over the term of the lease.<br />

Other income<br />

Other income is recognised when the right to receive payment is established, after services have been<br />

rendered.<br />

(j)<br />

Expenses<br />

(i)<br />

Property operating expenses<br />

property operating expenses are recognised on an accrual basis. Included in property operating<br />

expenses are fees incurred under the Property Management Agreement which are based on the<br />

applicable formula stipulated in note 1(c).<br />

Where A-<strong>REIT</strong> has the use of assets under operating leases, payments made under the leases are<br />

recognised in the Statement of Total Return on a straight-line basis over the term of leases.<br />

130 <strong>Ascendas</strong> real estate investment trust

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