Al-`Aqar Healthcare REIT Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS 1. CORPORATE INFORMATION (CONTINUED) (iii) Trustee’s fee Pursuant to the Restated Trust Deed dated 31 July 2013, the Trustee is entitled to receive a fee of up to 0.03% per annum of the net asset value of the Fund, calculated based on the monthly accrual basis and payable monthly in arrears. The Trustee’s fees for the financial year ended 31 December 2018 of RM273,226 (2017: RM266,224) is determined based on 0.03% (2017: 0.03%) of the monthly net asset value. The financial statements of the Group and of the Fund were authorised by the Board of Directors of the Manager for issuance on 31 January 2019. 2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS The financial statements of the Group and of the Fund have been prepared in accordance with the applicable provisions of the Restated Trust Deed dated 31 July 2013, Malaysian Financial Reporting Standards (“MFRS”), International Financial Reporting Standards and the SC Guidelines on Real Estate Investment Trusts and Islamic Real Estate Investment Trusts (“SC Guidelines”). At the beginning of the current financial year, the Group and the Fund adopted new and amended MFRSs which are mandatory for financial periods beginning on or after 1 January 2018 as fully described in Note 2.1. 2.1 Adoption of New Malaysian Financial Reporting Standards, Amendments to MFRSs, and Issues Committee Interpretation (“IC Interpretation”) In the current financial year, the Group and the Fund adopted all the new MFRSs, amendments to MFRSs and IC Interpretations issued by the Malaysian Accounting Standards Board (“MASB”) that are relevant to their operations and effective for annual financial periods commencing on or after 1 January 2018: MFRS 9 Financial Instruments (IFRS 9 issued by IASB in July 2014) MFRS 15 Revenue from Contracts with Customers (and the related Clarifications) Amendments to MFRS 2 Classification and Measurement of Share-based Payment Transactions Amendments to MFRS 140 Transfers of Investment Property Amendments to MFRSs Annual Improvements to MFRSs 2014 - 2016 Cycle IC Interpretation 22 Foreign Currency Transactions and Advance Consideration The adoption of these new MFRSs, amendments to MFRSs, and IC Interpretation did not result in significant changes to the accounting policies of the Group and the Fund and had no significant effect on the financial performance or position of the Group and the Fund except for the adoption of MFRS 9 and MFRS 15 as disclosed in Note 28. 2.2 Standards, Amendments to MFRSs and IC Interpretation in issue but not yet effective At the date of the authorisation for issue of these financial statements, the new Standards, Amendments to MFRSs and IC Interpretations that are relevant to the Group and the Fund which were in issue but not yet effective and not early adopted by the Group and the Fund are as listed below: MFRS 16 Leases 1 Amendments to MFRS 3 Definition of a Business 2 Amendments to MFRS 9 Prepayment Features with Negative Compensation 1 Amendments to MFRS 101 and MFRS 108 Definition of Material 2 Amendments to MFRS 10 and MFRS 128 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture 3 Amendments to MFRSs Annual Improvements to MFRSs 2015 - 2017 Cycle 1 IC Interpretation 23 Uncertainty over Income Tax Payments 1 MFRSs Amendments to References to the Conceptual Framework in MFRS Standards 2 FINANCIAL REPORTS 105 FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 (CONTINUED)