SDOT2 Product Disclosure Statement - Stockland

46
8.
Financial
Information (cont.)
(f) Investments in associates
A-GAAP and A-IFRS: Investments in associates,
which are those entities over which the Trust
exercises significant influence and which are not
intended for sale in the near future, are accounted
for using equity accounting principles.
Investments in associates are carried at the lower
of the equity accounted amount and the
recoverable amount. The Trust's equity accounted
share of the associate's net profit or loss is
recognised in the Statement of Financial
Performance from the date significant influence
commences until the date significant influence
ceases. The Trust's equity accounted share of the
associate's other movements in reserves is
recognised directly in reserves. MPT is an
associate of the Trust.
(g) Security Interest Holder unpaid call
A-GAAP and A-IFRS: The Security Interest Holder
unpaid call in respect of Units issued is only
recognised on Lease Commencement as it is not
payable until that time.
(h) Income tax
The Trust is not liable to pay income tax if all
Investors are presently entitled to all of the
income of the Trust. The Responsible Entity
intends to distribute all the income of the Trust, if
any, to Investors in accordance with the
Constitution.
(i)
GST
The Trust is registered for GST purposes and will
receive input tax credits for GST paid. Revenues,
expenses and assets are recognised net of the
amount of GST except:
- where the amount of GST incurred is not
recoverable from the taxation authority, it is
recognised as part of the cost of acquisition of
an asset or as part of an item of expense; and
- for receivables and payables which are
recognised inclusive of GST.
8.8 Key financial forecast assumptions
The major assumptions made in preparing the
Financial Forecasts are set out below. While the
Responsible Entity considers these assumptions to
be appropriate and reasonable at the time of
preparing this PDS, Investors should appreciate that
many factors which may affect results are outside the
control of the Responsible Entity and its directors or
may not be capable of being foreseen or accurately
predicted. Accordingly, actual results may vary
materially from the forecasts. Investors are advised to
review the assumptions and Financial Forecasts and
make their own independent assessment of the
future performance and prospects of the Trust.
The forecasts have been reviewed by Deloitte
Corporate Finance Pty Limited, which has prepared
the Independent Accountant's Report contained in
Section 12. Deloitte Touche Tohmatsu Ltd has
prepared a report on the taxation implications (refer to
Section 13). No person guarantees the future
performance of the Trust.
The Responsible Entity has prepared financial
forecasts for the Property based on expert reports
and its knowledge of the Property and the industry.
The Trust will have a 49% interest in MPT from Lease
Commencement and will recognise income from
MPT based on this ownership interest. As a result,
the forecast assumptions of MPT have a material
bearing on the Financial Forecasts. The key
assumptions underlying the Financial Forecasts are as
follows:
Assumptions relating to MPT
(a) Rental income
There are three sources of rental income for MPT
(which then pays interest on the loan from the
Trust until Lease Commencement and thereafter, a
distribution on the Trust’s Property Interest):
- for the period from Final Allocation to Lease
Commencement, Stockland Development will
lease the land from MPT to enable it to
develop the Property as described in Section
6.1; and
- for the period after Lease Commencement:
(i) Optus will lease the Property on terms
described in Section 6.2; and
(ii) to the extent that a neighbouring tenant
occupies some of the car parking spaces on
and has been granted a sub-lease over part
of the Property, Stockland Development will
guarantee the car parking licence fee that is
not otherwise payable by Optus. This is
described further in Section 5.7.