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unrealised gains or losses are eliminated in full.
Uniform accounting policies are adopted for all companies within the Group.
3.2 Segmental information
The Directors are of the opinion that the Group is currently engaged in a single segment
business, being the investment in the United Kingdom in supermarket property assets.
3.3 Rental income
Rental income arising on investment properties is accounted for in profit or loss on a straight
line basis over the lease term, as adjusted for the following:
· Any rental income from fixed and minimum guaranteed rent review uplifts is recognised
on a straight line basis over the shorter of the term to lease expiry or to the first tenant break
option;
NOTES TO THE FINANCIAL STATEMENTS
· Lease incentives are spread evenly over the lease term, even if payments are not made
on such a basis. The lease term is the non-cancellable period of the lease together with any
further term for which the tenant has the option to continue the lease, where, at the
inception of the lease, the Directors are reasonably certain that the tenant will exercise that
option.
Contingent rents are recognised in the period in which they are earned.
Where income is recognised in advance of the related cash flows due to fixed and minimum
guaranteed rent review uplifts or lease incentives, an adjustment is made to ensure that the
carrying value of the relevant property, including the accrued rent relating to such uplifts or
lease incentives, does not exceed the external valuation.
Rental income is invoiced in advance with that element of invoiced rental income that
relates to a future period being included within current liabilities in the consolidated
statement of financial position.
3.4 Finance expense
Finance expense consist principally of interest payable and loan arrangement fees.
Loan arrangement fees are expensed using the effective interest method over the term of
the relevant loan. Interest payable and any other finance costs, including commitment fees,
which the Group incurs in connection with bank borrowings, are expensed in the period in
which they occur.