Growthpoint Interactive Annual Report 2018

Section 2: Operating results, assets and liabilities 2.1 Revenue and segment information Accounting policies Revenue recognition Revenue is recognised at the fair value of the consideration received or receivable as detailed below for each category of revenue. All revenue is stated net of the amount of goods and services tax (GST). Revenue from investment properties is recognised on a straight- line basis over the life of the lease for leases where the revenue under the lease terms is fixed and determinable. For leases where the revenue is determined with reference to market reviews, inflationary measures or other variables, revenue is not straight-lined and is recognised in accordance with the lease terms applicable for the period. Segment results Segment results that are reported to the Group’s Managing Director (the chief operating decision maker) include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly distributions from investment in securities, change in fair value of investment in securities, head office expenses, interest expense and income tax assets and liabilities. Segmental information The Group operates wholly within Australia and derives rental income solely from property investments. The Group segments net property income and property revaluations into Office and Industrial segments and those results are shown below: Office Industrial Total $’000 $’000 $’000 Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2018 Revenue, excluding straight line lease adjustment 158,030 96,209 254,239 Property expenses (25,471) (15,143) (40,614) Net Property Income Segment results 132,559 81,066 213,625 Profit on sale of investment properties - 24,419 24,419 Net changes in fair value of investment properties 76,461 90,497 166,958 Segment results 209,020 195,982 405,002 Income not assigned to segments 20,959 Expenses not assigned to segments (68,159) Net profit before income tax 357,802 in this section ... This section shows the assets used to generate the Group’s trading performance and provides information on the office and industrial property segments that make up that performance. It also shows the liabilities incurred as a result. Liabilities relating to the Group’s financing activities are addressed in Section 3. On the following pages there are sections covering investment property, other non-current assets, acquisitions and disposals and other payables. Growthpoint Properties Australia 2018 Annual Report 63 Financial Report Portfolio Review Financial Management Business Overview Governance Additional Information