A financial asset is derecognised when:
- the rights to receive cash flows from the asset have expired;
- the Group has transferred its rights to receive cash flows or
transferred substantially all the risks and rewards and/or has
neither transferred nor substantially retained all the risks and
rewards of the asset, but has transferred control of the asset;
- if the hedging instrument no longer meets the criteria for
hedge accounting then hedge accounting is discontinued
prospectively. The cumulative gain or loss previously recognised in
equity remains there until the related transaction occurs. When the
hedged item is a non-financial asset, the amount recognised in
equity is transferred to the carrying amount of the asset when it
is recognised. In other cases the amount recognised in equity is
transferred to the consolidated income statement in the same period
as the hedged item affects profit or loss.
Financial liabilities
A financial liability is derecognised when the obligation under
the liability is discharged, cancelled or expires. When an existing
financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing
liability are substantially modified, such an exchange or
modification is treated as a reversal of the original liability and
the recognition of a new liability and the difference in the
respective carrying amount is recognised in the consolidated income
statement.
3.9 Trade receivables
Trade receivables are carried at amortised cost less provision
for doubtful debts, if any. The Board of Directors of the Group
assess specific provisions (refer to note 15) on a customer by
customer basis throughout the period.
3.10 Current assets and liabilities
Due to the short time frame in which these transactions are
settled, the fair value of other current assets and liabilities due
within one year approximates the carrying value disclosed in the
consolidated financial statements.
3.11 Assets held for sale
Investment property is transferred to current assets held for
sale when it is expected that the carrying amount will be recovered
principally through sale rather than from continuing use. For this
to be the case, the property must be available for immediate sale
in its present condition subject only to terms that are usual and
customary for sales of such property and its sale must be highly
probable. On reclassification, investment property that is measured
at fair value continues to be so measured.
3.12 Cash and cash equivalents
Cash includes cash on hand and cash with banks. Cash equivalents
are short term, highly liquid investments that are readily
convertible to known amounts of cash with original maturities of
three months or less and are subject to an insignificant risk of
change in value. The use and disbursement of certain cash deposits
are restricted under the terms of various financing agreements.
Bank overdrafts that are repayable on demand and that form an
integral part of the Group's cash management are included as a
component of cash and cash equivalents for the purpose of the
consolidated statement of cash flows.
3.13 Share capital
Ordinary shares are classified as equity. External costs
directly attributable to the issue of new shares, other than on a
business combination, are shown as a deduction, net of tax, in
equity from the proceeds. Share issue costs incurred directly in
connection with a business combination are included in the cost of
acquisition.
3.14 Issue costs
The cost of raising capital represents direct costs incurred in
establishing or increasing the capital of the Company including,
amongst others, legal, accounting, financial advisory and equity
underwriting fees.
3.15 Preference shares
Preference shares are classified as a financial liability due to
the contractual obligation by the issuer to redeem them in cash at
a date in the future.
Where the preference shares are classified as a financial
liability, external costs directly attributable to issuance of the
preference shares are capitalised and amortised over the life of
the preference shares.
3.16 Interest bearing loans and borrowings
Debt, comprising secured and unsecured bank loans, is reflected
in the consolidated statement of financial position at the fair
value of the initial proceeds less the unamortised portion of
discounts and transaction costs incurred to acquire the debt.
Discounts and transaction costs are amortised over the life of the
related debt through finance expenses using the effective interest
rate method.
Transaction costs include fees and commission paid to agents,
advisers, brokers and dealers, levies by regulatory agencies and
securities exchanges, registration fees and transfer taxes and
duties. Transaction costs do not include internal administrative or
holding costs.
3.17 Tax and deferred tax
According to the Luxembourg regulations concerning undertakings
for collective investments, the Company is not subject to income
taxes in Luxembourg. It is, however, liable to an annual
subscription tax of 0.05% (taxe d'abonnement) of its total net
assets, payable quarterly, and assessed on the last day of each
quarter. Real estate revenues, or capital gains derived thereon,
may be subject to taxes by assessment, withholding or otherwise in
the countries where the real estate is situated.
The subsidiaries of the Group are subject to taxation in the
countries in which they operate. Current taxation is provided for
at the current applicable rates on the respective taxable
profits.
Deferred income tax is provided in full, using the liability
method, on temporary differences arising between the tax base of
assets and liabilities and their carrying amounts in the
consolidated financial statements.
Deferred income tax is not accounted for if it arises from
initial recognition of an asset or liability in a transaction other
than a business combination which at the time of the transaction
affects neither accounting nor taxable profit nor loss. The
aggregate amount of such deferred income tax is disclosed as
unrecognised deferred income tax (note 25). Deferred income tax is
determined with regard to tax laws and rates that have been enacted
or substantially enacted into law by the consolidated statement of
financial position date and are expected to apply when the related
deferred income tax asset is realised or the deferred income tax
liability is settled.
Deferred income tax is provided on temporary differences arising
on investments in subsidiaries, except where the timing of the
reversal of the temporary difference is controlled by the Group and
it is probable that the temporary difference will not reverse in
the foreseeable future.
Deferred income tax assets are recognised to the extent that it
is probable that future taxable profit will be available against
which the temporary differences can be utilised. The carrying
amount of deferred income tax assets are reviewed at each balance
sheet date and reduced to the extent that it is no longer probable
that sufficient taxable profit will be available to allow all or
part of the deferred income tax assets to be utilised.
Unrecognised deferred tax assets are re-assessed at each
consolidated statement of financial position date and are
recognised to the extent that it has become probable that future
taxable profit will allow the deferred tax assets to be
recovered.
Deferred tax assets and deferred tax liabilities are offset, if
(i) a legally enforceable right exists to set off current tax
assets against current tax liabilities, if (ii) the deferred taxes
relate to the same taxable entity and the same taxation authority
and if (iii) different taxable entities which intend either to
settle current tax liabilities and assets on a net basis, or to
realise the assets and settle the liabilities simultaneously, in
each future period in which significant amounts of deferred tax
liabilities or assets are expected to be settled or recovered.
3.18 Provisions
A provision is recognised if, as a result of a past event, the
Group has a present legal or constructive obligation that can be
estimated reliably, and it is probable that an outflow of economic
benefits will be required to settle the obligation. Provisions are
determined by discounting the expected future cash flows at a
pre-tax rate that reflects current market assessments of the time
value of money and the risks specific to the liability.
3.19 Deferred income
Deferred income represents rental income which has been billed
to customers at the consolidated statement of financial position
date, but which relates to future periods.
3.20 Rental income
Rental income from investment properties is accounted for on a
straight-line basis taking account of any rent free periods and
other lease incentives, net of any sales taxes, over the term of
the ongoing leases.
3.21 Finance income and expenses
Finance income comprises interest income on funds invested and
gains on hedging instruments that are recognised in the
consolidated income statement. Interest income is recognised using
the effective interest rate method.
Finance expenses comprise interest expense on borrowings,
amortisation of debt transaction costs and losses on hedging
instruments that are recognised in the consolidated income
statement.
Attributable transaction costs incurred in establishing the
Group's credit facilities are deducted from the fair value of
borrowings on initial recognition and are amortised over the
lifetime of the facilities through the consolidated income
statement. Borrowing costs that are not directly attributable to
the acquisition, construction or production of a qualifying asset
are recognised in the consolidated income statement using the
effective interest rate.
Invista Euro. (LSE:IERE)
Historical Stock Chart
From Jun 2024 to Jul 2024
Invista Euro. (LSE:IERE)
Historical Stock Chart
From Jul 2023 to Jul 2024