DUNDEE INTERNATIONAL REIT

DUNDEE INTERNATIONAL 2011 Third Quarter Report
Valuation of financial instruments
The Trust makes estimates and assumptions relating to the fair value measurement of the Exchangeable Notes,
the deferred unit incentive plan, the convertible debenture conversion feature, derivative instruments, and the
fair value disclosure of the convertible debentures, mortgages and term loans. The critical assumptions
underlying the fair value measurements and disclosures include the market price of Units, market interest rates
for debt and interest rate derivatives, unsecured debentures and foreign currency derivatives.
For certain financial instruments, including cash and cash equivalents, amounts receivable, amounts payable
and accrued liabilities, and distributions payable, the carrying amounts approximate fair values due to their
immediate or short-term maturity. The fair value of term loans is determined based on discounted cash flows
using discount rates that reflect current market conditions for instruments with similar terms and risks. The fair
value of convertible debentures uses quoted market prices from an active market.
Note 5
FUTURE ACCOUNTING POLICY CHANGES
Financial instruments
IFRS 9, “Financial Instruments” (“IFRS 9”) was issued by the International Accounting Standards Board (“IASB”)
on November 12, 2009, and will replace IAS 39, “Financial Instruments: Recognition and Measurement” (“IAS
39”). IFRS 9 provides guidance on the classification and measurement of financial assets and financial liabilities.
IFRS 9 is effective for annual periods beginning on or after January 1, 2013. The Trust is currently evaluating the
impact of IFRS 9 on its consolidated financial statements.
Income taxes
In December 2010, the IASB made amendments to IAS 12, “Income Taxes” (“IAS 12”) that are applicable to the
measurement of deferred tax liabilities and deferred tax assets where investment property is measured using
the fair value model in IAS 40, “Investment Property”. The amendments introduce a rebuttable presumption
that, for purposes of determining deferred tax consequences associated with temporary differences relating
to investment properties, the carrying amount of an investment property is recovered entirely through sale. This
presumption is rebutted if the investment property is held within a business model whose objective is to
consume substantially all of the economic benefits embodied in the investment property over time, rather
than through sale. The amendments to IAS 12 are effective for annual periods beginning on or after January 1,
2012. The Trust is currently evaluating the impact of IAS 12 on its consolidated financial statements.
Joint arrangements
On May 12, 2011, the IASB issued IFRS 11, “Joint Arrangements” which is effective for annual periods beginning
on or after January 1, 2012. This new standard replaces IAS 31, “Interests in joint ventures”. The new standard
eliminates the option to proportionately consolidate interests in certain types of joint ventures. The Trust is
currently evaluating the impact of this standard on the consolidated financial statements.
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