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1. Accounting policies and presentation of annual financial statements
continued
1.18 Employee benefits
continued
All share-based remuneration is ultimately recognised as an expense in profit or loss, with a corresponding increase in equity. If
vesting periods or other vesting conditions apply, the expense is allocated over the vesting period, based on the best available
estimate of the number of shares expected to vest.
1.19 Revenue
Property portfolio revenue
Property portfolio revenue comprises operating lease income and operating cost recoveries from the letting of investment
properties. Operating lease income is recognised on a straight-line basis over the term of the lease.
Turnover rentals are included in revenue when the amounts can be reliably measured.
Interest received
Interest earned on cash invested with financial institutions is recognised on an accrual basis using the effective interest method.
1.20 Borrowing costs
Borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset are capitalised as part of
the cost of that asset until such time as the asset is substantially ready for its intended use.
Qualifying assets are those that necessarily take a substantial period of time to prepare for their intended use.
The amount of borrowing costs eligible for capitalisation is the actual borrowing costs incurred on funds specifically borrowed
in respect of the qualifying asset. Investment income earned on the temporary investment of borrowings pending their
expenditure on qualifying assets is deducted from the borrowing cost capitalised. Capitalisation ceases when substantially all
the activities necessary to prepare the qualifying asset for its intended use are complete.
All other borrowing costs are recognised as an expense in the period in which they are incurred.
1.21 Taxation
1.21.1 Current taxation
The charge for current taxation is based on the results for the year as adjusted for items which are non-taxable or
disallowable and any adjustment for taxation payable or receivable for previous years.
Current taxation liabilities/(assets) for the current and prior periods are measured at the amount expected to be paid
to/(recovered from) the taxation authorities, using the taxation rates and taxation laws that have been enacted or
substantively enacted by the reporting date.
1.21.2 Deferred taxation
Deferred taxation is recognised for temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used for taxation purposes. Deferred taxation is not recognised for the
following temporary differences:
Q
The initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither
accounting nor taxable profit
Q
Goodwill that arises on initial recognition in a business combination
Q
Differences relating to investments in subsidiaries and jointly controlled entities to the extent that it is probable that
they will not reverse in the foreseeable future
A deferred taxation asset is recognised for all deductible temporary differences to the extent that it is probable that
taxable profit will be available against which the deductible temporary differences can be utilised. Deferred taxation
assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related
taxation benefit will be realised.
Deferred taxation assets and liabilities are measured at the taxation rates that are expected to apply to the period when
the asset is realised or the liability is settled, based on taxation rates and taxation laws that have been enacted or
substantively enacted by the reporting date.
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Hyprop Investments Limited
Integrated Report 2015