BWP TRUST ANNUAL REPORT 2015
37
1. REVENUE
June 2015
$000
June 2014
$000
Rental income
142,533
122,857
Other property income
2,088
4,099
Finance income
256
470
Revenue
144,877
127,426
Recognition and measurement
Revenue is recognised to the extent that it is probable that the
economic benefits will flow to the entity and the revenue can be
reliably measured using the following criteria:
Rental and other property income
Rental and other property income is recognised at the amount and
when due under the terms of the lease. All fixed, Consumer Price
Indices-linked and market rent review increases are recognised in
income from the date that these are due in accordance with the
respective lease terms. This is done to ensure that rental income is
matched with the associated cash flows over the term of the lease.
Finance income
Finance income is interest income on bank deposits and is recognised
as the interest accrues, using the effective interest method.
2. EXPENSES
June 2015
$000
June 2014
$000
Interest expense on bank debt
facilities
20,526
15,480
Interest expense on interest rate
swaps
5,290
5,421
Finance costs
25,816
20,901
Responsible entity’s fees
11,071
8,567
Non-recoverable property costs
1
5,733
4,716
Listing and registry expenses
396
493
Meeting costs
-
277
Bad debts written off
-
302
Other
290
202
Other operating expenses
6,419
5,990
1
Included in non-recoverable property costs are amounts paid or payable
of $2,302,207 (2014: $1,918,499) for Queensland land tax which under
the respective state legislation when the lease was entered into cannot be
on-charged to tenants.
Recognition and measurement
Finance costs
Finance costs are recognised as an expense when incurred, with
the exception of interest charges on funds invested in properties
with substantial development and construction phases, which are
capitalised to the property until such times as the construction work
is complete.
The capitalisation rate used to determine the amount of finance costs
to be capitalised is the weighted average interest rate applicable to the
Trust’s outstanding borrowings during the year.
Responsible entity’s fees
The responsible entity, BWP Management Limited, is entitled to a
management fee payable quarterly in arrears of 0.55 per cent per
annum of the gross asset value of the Trust.
The responsible entity is also entitled to a fee calculated at the rate of
0.05 per cent per annum of the gross asset value of the Trust up to
$200 million and 0.035 per cent per annum of the amount by which
the gross asset value of the Trust exceeds $200 million.
The responsible entity may waive the whole or any part of the
remuneration to which it would otherwise be entitled (see Note 16).
