SDOT2 Product Disclosure Statement - Stockland

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The key differences between A-GAAP and A-IFRS in relation to the Financial Information are detailed below.
Item Treatment under A-GAAP Treatment under A-IFRS
Rental Income
Derivative
instruments
Contributed
equity (from
unitholders)
Accrued as the underlying lease
provides, generally resulting in increases
in rent each year.
Gains and losses on interest rate swaps
are included in the determination of
interest expenses.
Gains and losses on forward interest
rate contracts are deferred and
amortised over the term of the
underlying borrowing.
Equity in the Statement of Financial
Position.
Averaged over the life of the lease, to
the extent it can be reliably measured,
resulting in no rental growth.
Derivatives are initially recognised at
fair value on the date a derivative
contract is entered into and are
subsequently remeasured at their fair
value at each reporting date. The
resulting gain or loss is recognised in
the Statement of Financial
Performance immediately unless the
derivative is designated and effective
as a hedging instrument, in which
event the timing of the recognition in
the Statement of Financial
Performance depends on the nature of
the hedge relationship.
In certain circumstances, the
contribution from unitholders may be
classified as debt, where the Trust has
an obligation to repay the contributed
amount.