Accounting policies
Mortgage loans
Mortgage loans are recognised initially at the proceeds received net of transaction expenses incurred. Subsequently, the loans are measured at amortised cost; the difference between the proceeds and the nominal value is recognised as an interest expense in the income statement over the loan period.
Leases
Leases in terms of which the Group assumes substantially all the risks and rewards of ownership (finance leases) are recognised in the balance sheet at the lower of the fair value of the leased asset and the net present value of the lease payments computed by applying the interest rate implicit in the lease or an alternative borrowing rate as the discount rate. Assets acquired under finance leases are depreciated and written down for impairment under the same policy as determined for the other fixed assets of the Group.
The remaining lease obligation is capitalised and recognised in the balance sheet under debt, and the interest element on the lease payments is charged over the lease term to the income statement.
All other leases are considered operating leases. Payments made under operating leases are recognised in the income statement on a straight-line basis over the lease term.
Provisions
Provisions are recognised when, as a result of an event occurring before or at the date of the statement of financial position, DHI has a legal or a constructive obligation, and it is probable that there may be an outflow of economic benefits to meet the obligation. Provisions are measured as Management’s best estimate of the amount which is expected to be required to settle the liability. Provisions mainly relates to the reinstatement of tenancies etc.
Other debts
Other debts are measured at amortised cost, substantially corresponding to nominal value.