90 / 156
NOTES TO THE FINANCIAL STATEMENTS
continued
for the year ended 30 June 2015
1. Accounting policies and presentation of annual financial statements
continued
1.7 Interests in joint operations
continued
When a group entity undertakes its activities under joint operations, the group as a joint operator recognises in relation to its
interest in a joint operation:
Q
Its assets, including its share of any assets held jointly
Q
Its liabilities, including its share of any liabilities incurred jointly
Q
Its revenue from the sale of its share of the output arising from the joint operation
Q
Its share of the revenue from the sale of the output by the joint operation
Q
Its expenses, including its share of any expenses incurred jointly
The group accounts for the assets, liabilities, revenues and expenses relating to its interest in a joint operation in accordance
with the IFRS applicable to the particular assets, liabilities, revenues and expenses.
In the separate annual financial statements of the company, interests in joint operations are accounted for in the same manner.
1.8 Investments in associates and joint ventures
An associate is an entity over which the company can exercise significant influence, through participation in the financial and
operating policy decisions of the investee, but where it does not have control or joint control over those policies.
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net
assets of the joint arrangement.
The results, assets and liabilities of associates and joint ventures are incorporated in the annual financial statements using the
equity method of accounting, except when the investment is classified as held for sale, in which case it is accounted for in
accordance with IFRS 5.
Under the equity method, the investment is initially recorded at cost and thereafter the carrying value is adjusted to recognise
the investor’s share of the post-acquisition profits or losses of the investee after the date of acquisition, distributions received
and any adjustments that are required. The profits or losses are recognised in the statements of comprehensive income. The
cumulative post-acquisition movements are adjusted against the carrying amount of the investment.
An investment in an associate or a joint venture is accounted for using the equity method from the date on which the investee
becomes an associate or a joint venture.
When the reporting period of the investor is different to that of the associate or joint venture, the associate or joint venture
prepares for the use of the investor, annual financial statements as at the same date as the financial statements of the investor.
Where a group entity transacts with an associate or joint venture of the group, profits and losses are eliminated to the extent
of the group’s interest in the relevant associate or joint venture.
In the separate annual financial statements of the company, investments in associates or joint ventures are accounted for at
cost and adjusted for impairments, if applicable.
1.9 Building appurtenances and tenant installations
Building appurtenances and tenant installations are carried at cost less accumulated depreciation and any accumulated
impairment losses.
Depreciation is provided on all building appurtenances and tenant installations to write down the cost, less residual value, by
equal instalments over their useful lives as follows:
Q
Tenant installations – period of lease
Q
Building appurtenances – three to seven years
Subsequent expenditure is capitalised when it is probable that future economic benefits will flow to the group and its cost can
be reliably measured. All other expenditure is recognised as an expense in the period in which it is incurred. Gains and losses on
the disposal of building appurtenances and tenant installations are recognised in profit or loss and are calculated as the difference
between the sale price and the carrying value of the item sold.
88
Hyprop Investments Limited
Integrated Report 2015
FINANCIAL STATEMENTS