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FRS 110's impact on Reit sponsors muted

Earlier worries were that the larger balance sheets would result in higher gearing ratios and lower returns on assets

With FRS 110 requiring companies to consolidate entities in their financial statements when there is deemed control and power, some sponsors have to treat their Reits as subsidiaries in their financial statements even when their unitholding in each Reit is less than 50 per cent.


FOR most of the major sponsors that have started to adopt FRS 110 "Consolidated Financial Statements" in their quarterly results last year, they have done so without a glitch, despite earlier concerns that their larger balance sheets will result in higher gearing ratios and...