ASCENDAS india trust ANNUAL REPORT 2014/15
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
For the financial year ended 31 March 2015
2.
Significant accounting policies (continued)
2.16 Leases
(a)
When the Group is the lessee:
The Group leases certain equipment from non-related parties.
Lessee – Operating leases
Leases where substantially all risks and rewards incidental to ownership are retained by the lessors are classified
as operating leases. Payments made under operating leases (net of any incentives received from the lessors) are
recognised in profit or loss on a straight-line basis over the period of the lease.
Contingent rents are recognised as an expense in profit or loss when incurred.
(b)
When the Group is the lessor:
The Group leases investment properties to non-related parties.
Lessor – Operating leases
Leases of investment properties where the Group retains substantially all risks and rewards incidental to ownership
are classified as operating leases. Rental income from operating leases (net of any incentives given to the lessees) is
recognised in profit or loss on a straight-line basis over the lease lock-in period.
Initial direct costs incurred by the Group in negotiating and arranging operating leases are added to the carrying
amount of the leased assets and recognised as an expense in profit or loss over the lease term on the same basis as
the lease income.
Contingent rents are recognised as income in profit or loss when earned.
2.17 Taxes
(a)
Current income tax
Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be
paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively
enacted at the end of the reporting period, in the countries where the Group operates and generates taxable income.
Current income taxes are recognised in profit or loss except to the extent that the tax relates to items recognised
outside profit or loss, either in other comprehensive income or directly in unitholders’ funds. Management periodically
evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject
to interpretation and establishes provisions where appropriate.
