Key Accounting Policies:
Stockland’s consolidated financial statements are prepared in accordance with Australian Accounting Standards (“AASBs”). All subsidiaries and special purpose entities are consolidated and all significant inter-company transactions and balances are eliminated. Then, AASB requires that management to make estimates and assumptions. Actual results could differ from these estimates. There are several accounting policies related to the consolidation:
Revenue Recognition
Revenue is recognized at the fair value of the consideration received or receivable net of the amount of goods and service tax levied. Revenue for Stockland mainly derives from property development sales and rent from investment properties. Revenue from residential land sales and property sales is recognized in the Income Statement upon settlement and after contractual duties are completed and revenue from property development services rendered is recognized in proportion to stage of completion of the transaction at balance date. Rent from investment properties is recognized in the Income Statement on a straight-line basis over the lease term.
Finance Income and Expenses
Finance income includes interest receivable on funds invested and gains on hedging instruments that are recognized in the Income Statement. Finance costs include interest payable on bank overdraft and borrowings calculated using the effective interest method. Finance costs are expensed as incurred except to the extent that they are directly attributable to the acquisition, construction or production of a qualifying assets. In these circumstances, borrowing costs are capitalized to the cost of the assets until the assets are ready for their intended use or sale.
Non-current Assets ...