Common use of Derecognition Clause in Contracts

Derecognition. Financial assets are derecognised when the rights to receive cash flows from the assets expire or, the financial assets are transferred and the Group has transferred substantially all the risks and rewards of ownership of the financial assets. On derecognition of a financial asset, the difference between the asset’s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognised in other comprehensive income is recognised in profit or loss. Financial liabilities are derecognised when the obligation specified in the relevant contract is discharged, cancelled or expires. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in profit or loss. 98 Fortune Real Estate Investment Trust Notes to the Financial Statements (continued) For the year ended 31 December 2010 3 Significant Accounting Policies (continued)

Derecognition. Financial assets are derecognised when the rights to receive cash flows from the assets expire or, the financial assets are transferred and the Group has transferred substantially all the risks and rewards of ownership of the financial assets. On derecognition of a financial assetassets in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognised in other comprehensive income and accumulated in equity is recognised in profit or loss. Financial liabilities are derecognised when the obligation specified in the relevant contract is discharged, cancelled or expiresexpired. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in profit or loss. 98 Fortune Real Estate Investment Trust Notes to the Financial Statements (continued) For the year ended 31 December 2010 3 Significant Accounting Policies (continued).