Al-`Aqar Healthcare REIT Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS 23 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) (d) Foreign Currency Risk (continued) Sensitivity analysis for foreign currency risk The following table demonstrates the sensitivity of the Group’s profit/(loss) net of tax to a reasonably possible change in the AUD exchange rates against the functional currency of the Group, with all other variables held constant. Other comprehensive income The Group 2018 2017 RM RM AUD Strengthened 5% 753,144 443,405 Weakened 5% (753,144) (443,405) 24. SEGMENT REPORTING The Group has a single operating segment. For management purposes, the Group is organised into business units based on the geographical location of customers and assets, and has two reportable segments as follows: (i) Malaysia (ii) Australia Management monitors the operating results of its business units separately for the purpose of making decisions on resource allocation and performance assessment. Segment performance is evaluated based on operating profit. The Group’s segmental information is as follows: 31 December 2018 Malaysia Australia Total RM RM RM Rental 91,097,366 11,551,609 102,648,975 Property expenses (5,934,798) (104,716) (6,039,514) Net property income 85,162,568 11,446,893 96,609,461 Investment income 2,031,968 - 2,031,968 Other income 510,841 - 510,841 Gain on fair value 30,341,920 - 30,341,920 Total income 118,047,297 11,446,893 129,494,190 Expenditure (5,424,523) (199,223) (5,623,746) Operating profit 112,622,774 11,247,670 123,870,444 Financing costs (31,578,782) - (31,578,782) Profit before tax 81,043,992 11,247,670 92,291,662 FINANCIAL REPORTS 147 FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 (CONTINUED)