Sunstone U.S. Opportunity (No. 4) Realty Trust and Sunstone (No. 4) Limited Partnership Changes Calculation of Income
VANCOUVER, May 1, 2012 /CNW/ - Sunstone U.S. Opportunity (No. 4) Realty Trust (the "Realty Trust") and Sunstone (No. 4) Limited Partnership (the "Master LP") today issues changes for the calculation of net income for each quarter in 2011 in the MD&A for the period ended December 31, 2011.
Realty Trust and Master LP
During the course of the Realty Trust's and the Master LP's 2011 year-end financial audits it was determined that as a result of the specific difference between the Canadian GAAP and IFRS, (IFRS3) - Business Combinations, the acquisition of the Embassy Suites Dallas Fort Worth Airport South hotel property should have been accounted for as a business combination rather than an asset acquisition. As a result of this difference, the costs related to the acquisition of the hotel property should have been expensed immediately rather than capitalized and amortized over the estimated life of the asset. Application of the presentation and measurement principles of IFRS3 is complex, particularly in evaluating business combinations versus asset acquisitions.
The effect of this difference has been disclosed in the MD&A for the period ended December 31, 2011. The overall impact on the net income (loss) is an additional loss of $42,834 for the quarter ended September 30, 2011. To see the full financial statement impact, by quarter, please refer to the above noted MD&A.
Master LP
During the course of the Master LP's 2011 year-end financial audit it was determined that as a result of IFRS, (IAS32) - Financial Instruments, the Master LP's Class A units should have been classified as a liability on issuance date. As a result of this difference, the unit issuance costs would be recorded on the statement of loss and comprehensive loss rather than being recognized on the statement of partners' capital. In addition, as there is no class of units that exit as equity after this change, there is no longer a partners' capital amount but instead a net liabilities attributable to partners. Application of the presentation and measurement principles of IFRS IAS32 is complex, particularly in evaluating business combination versus asset acquisitions. This change has no impact on the Realty Trust.
The effect of the difference mentioned above has been disclosed for each quarter in the MD&A for the period ended December 31, 2011. The overall impact on the net income (loss) is: an additional $2,264,842 loss for the quarter ended June 30, 2011; and an additional $246,447 loss for the quarter ended September 30, 2011.
To see the full financial statement impact, by quarter, please refer to the above noted MD&A's. Additional information about the Trust and the Master LP is available at www.sunstoneadvisors.com or www.sedar.com.
Andrew Greig, Director of Business Development
Sunstone U.S. Opportunity (No. 4) Realty Trust
Sunstone (No. 4) Limited Partnership
Suite 910, 925 West Georgia Street
Vancouver, BC V6C 3L2
Phone: (604) 681-5959 or (888) 681-5959
E-mail: [email protected]
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