Page 72 - ar2013

70 LIPPO MALLS INDONESIA RETAIL TRUST ANNUAL REPORT 2013
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONT’D
Basis of Presentation
The consolidation accounting method is used for the consolidated fnancial statements that include the fnancial statements
made up to the statements of fnancial position date each reporting year of the Trust and all its directly and indirectly controlled
subsidiaries. Consolidated fnancial statements are the fnancial statements of the Group presented as those of a single
economic entity. The consolidated fnancial statements are prepared using uniform accounting policies for like transactions
BOE PUIFS FWFOUT JO TJNJMBS DJSDVNTUBODFT "MM TJHOJöDBOU JOUSBHSPVQ CBMBODFT BOE USBOTBDUJPOT JODMVEJOH JODPNF FYQFOTFT BOE
dividends, are eliminated in full on consolidation. The results of the investees acquired or disposed of during the reporting year
are accounted for from the respective dates of acquisition or up to the dates of disposal which is the date on which efective
control is obtained of the acquired business until that control ceases. On disposal the attributable amount of goodwill, if any,
is included in the determination of the gain or loss on disposal.
Changes in the group’s ownership interest in a subsidiary that do not result in the loss of control are accounted for within
equity. When the group loses control of a subsidiary it derecognises the assets and liabilities and related equity components
of the former subsidiary. Any gain or loss is recognised in proft or loss. Any investment retained in the former subsidiary is
measured at its fair value at the date when control is lost and is subsequently accounted as available-for-sale fnancial assets
in accordance with FRS 39.
Basis of Preparation of Financial Statements
The preparation of fnancial statements in conformity with generally accepted accounting principles requires the management
to make estimates and assumptions that afect the reported amounts of assets and liabilities and disclosure of contingent assets
BOE MJBCJMJUJFT BU UIF EBUF PG UIF öOBODJBM TUBUFNFOUT BOE UIF SFQPSUFE BNPVOUT PG SFWFOVFT BOE FYQFOTFT EVSJOH UIF SFQPSUJOH
period. Actual results could difer from those estimates. The estimates and assumptions are reviewed on an ongoing basis.
Apart from those involving estimations, management has made judgements in the process of applying the entity’s accounting
QPMJDJFT 5IF BSFBT SFRVJSJOH UIF .BOBHFS T NPTU EJóDVMU TVCKFDUJWF PS DPNQMFY KVEHFNFOUT PS BSFBT XIFSF BTTVNQUJPOT BOE
estimates are signifcant to the fnancial statements, are disclosed at the end of this footnote, where applicable.
Revenue Recognition
The revenue amount is the fair value of the consideration received or receivable from the gross infow of economic benefts
during the reporting year arising from the course of the ordinary activities of the entity and it is shown net of any related
TBMFT UBYFT BOE EJTDPVOUT 3FWFOVF GSPN SFOEFSJOH PG TFSWJDFT UIBU BSF PG TIPSU EVSBUJPO JT SFDPHOJTFE XIFO UIF TFSWJDFT BSF
completed. Revenue is recognised as follows:
Rental income from operating leases
Rental revenue is recognised on a time-proportion basis that takes into account the efective yield on the asset on a straight-
line basis over the leased term.
Interest income
Interest revenue is recognised on a time-proportion basis using the efective interest rate.
Dividend income
Dividend from equity instruments is recognised as income when the entity’s right to receive payment is established.
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
31 December 2013