AL-SALAM REIT ANNUAL REPORT 2017

AL-SALĀM REIT ANNUAL REPORT 2017 129 (b) Manager’s fees Pursuant to the Trust Deed dated 26 March 2015, the Manager is entitled to receive the following fees from the Fund: (i) A base management fee of up to 1% per annum of total asset value (excluding cash and bank balances) of the Fund calculated on a monthly accrual basis. The Manager’s base management fee for the current financial year is RM2,341,523 (2016: RM1,837,996). (ii) An acquisition fee of 1% of the transaction value (being the total purchase price) of any investment property directly or indirectly acquired from time to time by the Trustee for and on behalf of the Fund pro-rated, if applicable, to the proportion of the Fund’s interest and payable to the Manager upon completion of the acquisition of the investment property. The Manager did not earn any acquisition fee for the current and previous financial years. (iii) A disposal fee of 0.5% of the transaction value (being the total sales price) of any investment property directly or indirectly sold from time to time by the Trustees for and on behalf of the Fund pro-rated, if applicable, to the proportion of the Fund’s interest and payable to the Manager upon completion of the disposal of the investment property. The Manager did not earn any disposal fee for the current and previous financial year. (c) Trustee’s fees Pursuant to the Trust Deed dated 26 March 2015, the Trustee is entitled to receive a fee of up to 0.02% 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 current financial year is RM121,777 (2016: RM119,252). The financial statements of the Fund were authorised by the Board of Directors of the Manager for issuance on 29 January 2018. 2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS The financial statements of the Fund have been prepared in accordance with the provisions of the Trust Deed dated 26 March 2015, Malaysian Financial Reporting Standards (“MFRS”), International Financial Reporting Standards (“IFRS”) and the SC Guidelines. 2.1 Adoption of New and Revised Malaysian Financial Reporting Standards In the current financial year, the Fund had adopted all the revised Standards and Amendments issued by the Malaysian Accounting Standards Board (“MASB”) that are relevant to its operations and effective for annual periods beginning on or after 1 January 2017 as follows: NOTES TO THE FINANCIAL STATEMENTS - CONT’D