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英国论文网:英国公司合并财务报表记录 Notes to the Consolidated Financial State

英国论文网英国公司合并财务报表记录 Notes to the Consolidated Financial Statements

for the year ended 31 December 2010 (continued)


2. Significant accounting policies (continued)

Presentation of the Statement of Comprehensive Income

In order to better reflect the activities of an Investment Company and in accordance with guidance issued by the AIC, supplementary information which analyses the Statement of Comprehensive Income between items of a revenue and capital nature has been presented alongside the Statement of Comprehensive Income.


Investment properties

Freehold property held by the Group to earn income or for capital appreciation or both is classified as investment property in accordance with IAS 40 'Investment Property'. Property held under finance leases for similar purposes is also classified as investment property. Investment property is initially recognised at purchase cost plus directly attributable acquisition expenses. Investment properties are carried at a revalued amount which is stated at its fair value as determined on an open market basis as at the reporting date. The fair value of investment property is based on valuation by an independent valuer who holds a recognised and relevant professional qualification and who has recent experience in the location and category of the investment property being valued.


The fair value of investment property generally involves consideration of:

• Market evidence on comparable transactions for similar properties;

• The actual current market for that type of property in that type of location at the reporting date and current market expectations;

• Rental income from leases and market expectations regarding possible future lease terms;

• Hypothetical sellers and buyers, who are reasonably informed about the current market and who are motivated, but not compelled, to transact in that market on an arm's length basis; and

• Investor expectations on matters such as future enhancement of rental income or market conditions.


Gains and losses arising from changes in fair value are included in the Statement of Comprehensive Income in the year in which they arise. Purchases and sales of investment property are recognised when contracts have been unconditionally exchanged during the year and the significant risks and rewards of ownership have been transferred.


An item of investment property is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the item) is included in the Statement of Comprehensive Income in the year the item is derecognised. Investment properties are not depreciated.


Realised and unrealised gains on investment properties have been presented as capital items within the Statement of Comprehensive Income.

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