Estimates and assumptions The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are described below. The Group based its assumptions and estimates on parameters available when the consolidated financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Group. Such changes are reflected in the assumptions when they occur. Revaluation of investment properties and share investment The Group carries its investment properties and share investment at fair value, with changes in fair value being recognised in the statement of profit or loss. For investment properties, a valuation methodology using a combination of methods including the Market Capitalisation Rate was used. The Group engaged an independent valuation specialist to assess the fair value as at 30 June 2022 for the investment properties. For share investment refer to Note 9(a)(b). 4. (a) Revenue 2022 $’000 2021 $’000 Rental revenue 14,545 13,599 Provision of services revenue 10,090 10,285 Weekendmarkets revenue 770 896 Total revenue 26,215 24,780 Revenue is recognised for the major business activities using the methods outlined below: Rental revenue The Group enters into contractual rental arrangements with tenants for its investment properties. These arrangements specify the duration of the lease, amount of the lease payable (usually on a monthly basis) and lease incentives (if any). Rental revenue from investment properties is recognised on a straight-line basis over the lease term based on contractual arrangements. Revenue not received at the reporting date is reflected in the statement of financial position as a receivable or if paid in advance, as rent in advance (unearned income). Lease incentives granted are considered an integral part of the total rental revenue and are recognised as a reduction in rental income over the term of the lease, on a straight-line basis. Contingent rentals are recognised as income in the periods in which they are earned. Provision of services revenue and Weekend markets revenue Revenue for services is recognised over time as those services are provided. These services are mainly variable outgoings, provision of electricity and waste transfer. Invoices for these services are issued on a monthly basis. Under AASB 15, the total consideration in the service contracts is allocated to all services based on their relative stand-alone selling prices. The stand-alone selling price is determined based on the price at which the Group sells the services in separate transactions. Revenue for weekend markets is recognised at the point in time when a fee is payable by the public to access the market during the weekend. 29
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