Notes to the Financial Statements Year ended 31 December 2024 3 MATERIAL ACCOUNTING POLICIES (continued) 3.11 Revenue (i) Rental income from operating leases Rental income receivable under operating leases is recognised on a straight-line basis over the term of the lease, except where an alternative basis is more representative of the pattern of benefits to be derived from the leased assets. Lease incentives granted are recognised as an integral part of the total rental income to be received. Contingent rentals are recognised as income in the accounting period in which they are earned. (ii) Hotel revenue Revenue from hotel operations is recognised when the accommodation and related services are rendered. (iii) Hospitality income Hospitality income from operations is recognised on an accrual basis, upon rendering of the relevant services. Hospitality income includes fees from usage of the business centres and laundry facilities, recoveries from guests for utilities and telephone charges, income earned from the sales of food and beverages, service and maintenance fees, recoveries of property taxes and maintenance costs from tenants and fees for managing public areas as well as other miscellaneous income. (iv) Car park income For car parks which are leased to an external operator, car park income is recognised on a straight-line basis over the term of the lease. For other car parks, car park income is recognised on an accrual basis. 3.12 Expenses (i) Direct expenses Direct expenses consist of serviced residence management fees, property taxes, staff costs and other property outgoings where such expenses are the responsibility of the Stapled Group. (ii) Trustee’s fees The REIT Trustee’s fee and BT Trustee-Manager’s trustee fee are recognised on an accrual basis using the applicable formula as stipulated in Note 1.1(i) and Note 1.1(iii) respectively. (iii) REIT Manager’s management fees REIT Manager’s management fees are recognised on an accrual basis using the applicable formula, stipulated in Note 1.1(ii). (iv) BT Trustee-Manager’s management fees BT Trustee-Manager’s management fees are recognised on an accrual basis using the applicable formula, stipulated in Note 1.1(iii). (v) Serviced residence management fees The serviced residence management fees are recognised on an accrual basis using the applicable formula, stipulated in Note 1.1(iv). 168 CapitaLand Ascott Trust
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