Notes to the Financial Statements Year ended 30 June 2011 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING  POLICIES (CONTINUED) x) Pending Accounting Standards u) Income tax i) Current income tax ii) Deferred income tax v) Earnings per unit w) Goods and services tax (“GST”) ING REAL ESTATE COMMUNITY LIVING GROUP ANNUAL REPORT 2011 28 Reflecting this accounting policy, deferred management  fee income is calculated as the expected fee to be earned  on a resident’s ingoing loan, allocated pro-rata over the  resident’s expected tenure, together with any share of capital  appreciation that has occurred at reporting date. Interest income is recognised as the interest accrues using  the effective interest method. Receivables and payables are stated inclusive of GST.  The net amount of GST recoverable from or payable to  the tax authority is included in the balance sheet as an  asset or liability. Cash flows are included in the cash flow statement on  a gross basis. The GST components of cash flows arising  from investing and financing activities, which are recoverable  from or payable to the tax authorities, are classified as  operating cash flows. Under the current tax legislation, the Fund is not liable to  pay Australian income tax provided that its taxable income  (including any assessable capital gains) is fully distributed to  unitholders each year. Tax allowances for building and fixtures  depreciation are distributed to unitholders in the form of the  tax deferred component of distributions. IFRS 10  Consolidated Financial Statements  is applicable  to annual reporting periods beginning on or after  1 January 2013. The Group has not early adopted this  standard. It establishes a new control model that broadens  the situations when an entity is considered to be controlled  by another entity and includes new guidance for applying  the model to specific situations. It may lead to more entities  being consolidated into the Group. However, ING Real Estate Community Living Management  Trust and its subsidiaries are subject to Australian income tax. The subsidiaries that hold the Group’s foreign properties may  be subject to corporate income tax and withholding tax in  the countries in which they operate. Under current Australian  income tax legislation, unitholders may be entitled to receive  a foreign tax credit for this withholding tax. IFRS 12  Disclosure of Interests in Other Entities  is applicable to  annual reporting periods beginning on or after 1 January 2013.  The Group has not early adopted this standard. It includes  all disclosures relating to an entity’s interests in subsidiaries,  joint arrangements, associates and structures entities. New  disclosures have been introduced about the judgements made  by management to determine whether control exists, and to  require summarised information about joint arrangements,  associates and structured entities and subsidiaries with  non-controlling interests. Deferred income tax represents income tax (including  withholding tax) expected to be payable or recoverable by  taxable entities on the differences between the tax bases of  assets and liabilities and their carrying amounts for financial  reporting purposes. Deferred tax assets and liabilities are  measured at the tax rates that are expected to apply to the  year when the asset is realised through continuing use or the  liability is settled, based on tax rates (and tax laws) that have  been enacted or substantively enacted at reporting date.  Income taxes related to items recognised directly in equity  are recognised in equity and not against income. IFRS 13  Fair Value Measurement  is applicable to annual  reporting periods beginning on or after 1 January 2013.  The Group has not early adopted this standard. It establishes  a single source of guidance under IFRS for determining the  fair value of assets and liabilities. It does not change when  an entity is required to use fair value, but rather provides  guidance on how to determine fair value under IFRS when  fair value is required or permitted by IFRS. Application of this  guidance may result in different fair values being determined  for the relevant assets, particularly the Group’s investment  property; the precise impact is not known at this time.  IFRS 13 also expands the disclosure requirements for all  assets or liabilities carried at fair value. Basic earnings per unit is calculated as net profit attributable  to unitholders of the Fund divided by the weighted average  number of issued units. As there are no potentially dilutive  units on issue, diluted earnings per unit is the same as basic  earnings per unit. Revenue, expenses and assets (with the exception of  receivables) are recognised net of the amount of GST to the  extent that the GST is recoverable from the taxation authority.  Where GST is not recoverable, it is recognised as part of the  cost of the acquisition, or as an expense. The Board is expected to promulgate IFRS 10, 12 and 13  as Australian Accounting Standards in due course. Other new accounting standards, amendments to accounting  standards and interpretations have been published that are  not mandatory for the current reporting period. These are not  expected to have any material impact on the Fund’s financial  report in future reporting periods.