Notes to the Consolidated Financial Statements
Dollar amounts are in thousands of Canadian dollars (except share and per share amounts)
2. Significant Accounting Policies (continued)
In its evaluation, management considers whether Killam controls the entity by virtue of the following circumstances:
a) Power over more than half of the voting rights by virtue of an agreement with other investors;
b) Power to govern the financial and operating policies of the entity under a statute or an agreement;
c) Power to appoint or remove the majority of the members of the board of directors or equivalent governing body and control of the 
entity is by that board or body;
d) Power to cast the majority of votes at meetings of the board of directors or equivalent governing body and control of the entity is by 
that board or body.
A change in the ownership interest of a subsidiary, without a change of control, is accounted for as an equity transaction.  Losses are 
attributed to the non‑controlling interest even if that results in a deficit balance.
(ii) Joint Arrangements
The Company has contractual arrangements with other parties which represent joint ventures. These take the form of agreements to share 
control over the entities.
Where a joint venture is established through an interest in a company (a jointly controlled entity), the Company recognizes an interest 
in the entity’s assets and liabilities using the equity method of accounting. Under the equity method, the interest in the joint venture is 
carried in the Consolidated Statement of Financial Position at cost plus post acquisition changes in the Company’s share of the net assets, 
less distributions received and less any impairment in the value of individual investments.
(D) Property Asset Acquisitions and Business Combinations
Where property is acquired, management considers the substance of the assets and activities of the acquired entity in determining 
whether the acquisition represents the acquisition of a business. The basis of this judgmental assessment is set out in Note 3.
Where such acquisitions are not judged to be an acquisition of a business, they are not treated as business combinations. Rather, the cost 
to acquire the corporate entity is allocated between the identifiable assets and liabilities of the entity based on their relative fair values at 
the acquisition date and acquisition related transaction costs are capitalized to the property. Accordingly, no goodwill or additional deferred 
tax balances. 
All of Killam’s acquisitions have been determined to be asset acquisitions and therefore none are treated as a business combination.
(E) Revenue Recognition
(i) Rental income
Revenue from rental properties is recognized when a tenant commences occupancy of a rental unit or site and rent is due.  Rental income 
from investment properties is recognized on a straight line basis over the lease term. The Company has not transferred substantially all of 
the benefits and risks of ownership of its rental properties, and therefore accounts for leases with its tenants as operating leases. Incentives 
for lessees to enter into lease agreements are spread evenly over the lease term as a reduction of rental income, even if the payments are 
not made on such a basis. The lease term is the non‑cancelable period of the lease.
(ii) Service charges and expenses recoverable from tenants
Income arising from expenses recovered from tenants is recognized gross of the related expenses in the period in which the expense can be 
contractually recovered. r evenue related to laundry and parking are included gross of the related costs.
(iii) Manufactured home sales
Where revenue is obtained from the sale of manufactured homes, it is recognized when the significant risks and rewards have been 
transferred to the buyer. this will normally take place on the closing date of the home sale. such sales are considered sales of goods, and