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Investor Presentaiton

82 There is no record of intersegment transactions in the year. The accounting principles of the reportable segments are the same accounting policies of the Trust described in note 3. The gross margin by segment represents the net income on the same basis presented in the consolidated income statement. The presentation by reportable segment reflects the way in management reviews the Trust's financial information for purposes of making operational decisions about resource allocations and assessment of segment performance. 16. Subsequent events a. b. C. d. e. 17. On January 14, 2014 the internal Corporate Governance Comiteess of the Trust authorized, according to a franchise agreement with Marriot International, the development of a Courtyard hotel in Saltillo, Coahuila. The total investment will be $198,000,000, which includes the construction of the building, land investment, working capital and aquisition expenses. On January 16, 2014, the Trust obtained a credit line for $300,000,000, which will be destined to the acquisition and construction of hotels. The maturity of this credit is 180 days from the acquisition date and it is subject to an annual interest rate TIIE plus 2.5%. On January 28, 2014, the Trust signed a binding agreement for the acquisition of Hotel Aloft Guadalajara Las Americas, in Jalisco. The agreed price is $220,000,000 plus taxes and acquisition expenses. Payments will be made with the remaining cash proceeds from the IPO made on March 13, 2013 and through a line of credit obtained with a financial institution on January 16, 2014. On March 10, 2014, Fibra INN obtained a credit line for $500,000,000, which will be used to pay the binding contracts for the acquisition of hotels Aloft Guadalajara and Hotel Mexico Plaza Celaya. The maturity of this credit is August 14, 2014 and it is subject to an annual interest rate TIIE plus 2.5%. Based on the terms and conditions established in Appendix 12.9 of the Trust's Contract, a cash distribution from the Trust's taxable base for the period from October 1 to December 31, 2013 was declared by the Technical Committee, which was paid in cash on March 12, 2014 for a total amount of $6,917,051, with value of $0.0268 per CBFI. On the same date, additional distributions for a total amount of $54,763,649, $0.2120 per CBFI were approved. New accounting pronouncements- Fibra INN has not applied the following new and revised IFRSS that have been issued but are not yet effective as of December 31, 2013: • • • IFRS 9, Financial Instruments (1) Amendments to IAS 32, Compensation of Financial Assets and Financial Liabilities (2) IFRIC 21, Levies (2) (1) Effective for annual periods beginning not earlier than January 1, 2015 (2) Effective for annual periods beginning on or after January 1, 2014 IFRS 9, Financial Instruments- IFRS 9, "Financial Instruments" issued in November 2009, amended in October 2010, introduces new requirements for the classification and measurement of financial assets and financial liabilities and for derecognition. The standard requires all recognized financial assets that are within the scope of IAS 39 "Financial Instruments: Recognition and Measurement" to be subsequently measured at amortized cost or fair value. Specifically, debt investments that are held within a business model whose objective is to collect the contractual cash flows, and that have contractual cash flows that are solely payments of principal and interest on the principal outstanding are generally measured at amortized cost at the end of subsequent accounting periods. All other debt investments and equity investments are measured at their fair values at the end of subsequent accounting periods. The most significant effect of IFRS 9 regarding the classification and measurement of financial liabilities relates to the accounting for changes in fair value of a financial liability (designated as at FVTPL) attributable to changes in the credit risk of that liability. Specifically, under IFRS 9, for financial liabilities that are designated as at FVTPL, the amount of change in the fair value of the financial liability that is attributable to changes in the credit risk of that liability is recognized in other comprehensive income, unless the recognition of the effects of changes in the liability's credit risk in other comprehensive income would create or enlarge an accounting mismatch in profit or loss. Changes in fair value attributable to a financial liability's credit risk are not subsequently reclassified to profit or loss. Previously, under IAS 39, the entire amount of the change in the fair value of the financial liability designated as at FVTPL was recognized in profit or loss. IFRS 9, "Financial Instruments" issued in November 2013, introduces a new chapter on hedge accounting, putting in place a new hedge accounting model that is designed to be more closely aligned with how entities undertake risk management activities when hedging financial and non-financial risk exposures. As well, permits an entity to apply only the requirements introduced in IFRS 9 (2010) for the presentation of gains and losses on financial liabilities designated as at fair value through profit or loss without applying the other requirements of IFRS 9, meaning the portion of the change in fair value related to changes in the entity's own credit risk can be presented in other comprehensive income rather than within profit or loss. As IFRS 9 (2013) removes the mandatory effective date of IFRS 9 (2013), IFRS 9 (2010) and IFRS 9 (2009), leaving the effective date open pending the finalization of the impairment and classification and measurement requirements, Fibra INN has decided that the adoption of this standard will take place until IFRS 9 is completed. It is not practicable to provide a reasonable estimate of the effect of IFRS 9 until these phases have been concluded in their final version to be issued. Amendments to IAS 32, Compensation of Financial Assets and Financial Liabilities Amendments to IAS 32 "Offsetting Financial Assets and Financial Liabilities", clarify existing application issues relating to the offsetting requirements. Specifically, the amendments clarify the meaning of 'currently has a legally enforceable right of set-off' and 'simultaneous realization and settlement'. The amendments to IAS 32 are effective for annual periods beginning on or after January 1, 2014, with retrospective application required. The amendments to this standard have not been early adopted by Fibra INN and no material effects are expected due to their adoption. 83
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