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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
BWP Trust (“the Trust”) is a for profit unit trust of no fixed duration,
constituted under a Trust Deed dated 18 June 1998 as amended,
and the Trust’s units are publicly traded on the Australian Securities
Exchange. The Trust is managed by BWP Management Limited (“the
responsible entity”). Both the Trust and the responsible entity are
domiciled in Australia.
The Trust has a policy to invest in well located, geographically
diversified properties with long-term leases to substantial tenants,
predominantly in the large format retail sector, with the purpose of
providing unitholders with a secure, growing income stream and
capital growth.
Under current Australian income tax legislation, the Trust is not liable
for income tax, provided that its taxable income (including any realised
capital gains) is fully distributed to unitholders each year.
ABOUT THIS REPORT
The financial report of the Trust for the year ended 30 June 2016 was
authorised for issue in accordance with a resolution of the directors of
the responsible entity on 4 August 2016. The directors have the power
to amend and reissue the financial report.
The financial statements are a general purpose financial report which:
>> has been prepared in accordance with the requirements of
the Trust’s constitution, the
Corporations Act 2001
, Australian
Accounting Standards and other authoritative pronouncements
of the Australian Accounting Standards Board (AASB) and
International Financial Reporting Standards as issued by the
International Accounting Standards Board (IASB);
>> has been prepared on a historical cost basis, except for investment
properties and derivative financial instruments, which have been
measured at their fair value;
>> is presented in Australian dollars, which is the Trust’s functional
currency, and all values are rounded to the nearest thousand
dollars ($000) under the option available to the Trust under ASIC
Corporations (Rounding in Financial/Directors’ Reports) Instrument
2016/9, unless otherwise stated;
>> adopts all of the new and revised standards and interpretations
issued by the Australian Accounting Standards Board that are
relevant to its operations and effective for financial reporting periods
beginning on or before 1 July 2015. The adoption of these standards
did not have a material effect on the financial statements of the
Trust; and
>> does not early adopt a number of new standards, amendments to
standards and interpretations that have been issued or amended
but are not yet effective. The potential impact of the new standards,
amendments to standards and interpretations has been considered
and they are not expected to have a significant effect on the
financial statements.
SIGNIFICANT JUDGEMENTS AND ESTIMATES
In applying the Trust’s accounting policies, management continually
evaluates judgements, estimates and assumptions based on
experience and other factors, including expectations about future
events that may have an impact on the Trust. Judgements and
estimates which are material to the financial report are found in the
following notes:
Note 6: Investment properties
Page 35 and 36
Note 13: Financial risk management
Page 42
OTHER ACCOUNTING POLICIES
Significant and other accounting policies that summarise the
measurement basis used and are relevant to an understanding of the
financial statements are provided throughout the notes to the financial
statements.
SEGMENT INFORMATION
The Trust determines and presents its operating segment based on the
internal information that is provided to the Managing Director, who is
the Trust’s chief operating decision maker.
The Trust operates wholly within Australia and derives rental income
from investments in commercial warehouse properties and as
such this is considered to be the only segment in which the Trust is
engaged.
The operating results are regularly reviewed by the Managing Director
to make decisions about resources to be allocated and to assess
performance. There are no reconciling items that exist between the
discrete financial information reviewed by the Managing Director and
the financial statements relating to revenue, profit or loss, assets and
liabilities or other material items.
BWP Trust Annual Report 2016
32
Financial Report