AL-SALAM REIT ANNUAL REPORT 2017

AL-SALĀM REIT ANNUAL REPORT 2017 143 4.2 Key Sources of Estimation Uncertainty The key assumptions concerning the future and other key sources of estimation uncertainty at the end of the reporting period that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities of the Fund within the next financial year are discussed below: (a) Fair value of investment properties The fair values of the Fund’s investment properties have been arrived at on the basis of valuation carried out by Messrs. Cheston International (KL) Sdn Bhd, an independent valuer not related to the Fund, in accordance with Malaysia Valuation Standards issued by the Board of Valuers, Appraisers and Estate Agents, Malaysia. The fair values were determined based on capitalisation of net income method (“investment method”) as the primary valuation method with comparison and cost methodologies as a secondary check. In estimating the fair values of the investment properties, the highest and best use of the investment properties is their current use. The valuers have considered the results of the above methods in their valuation and applied professional judgment in the determination of the fair values of the Fund’s investment properties. Further details are disclosed in Note 11. 5. GROSS RENTAL INCOME 2017 2016 RM RM Base rental income 63,247,755 61,065,330 Service charges 5,722,536 5,372,732 Percentage rent 4,363,054 4,443,528 73,333,345 70,881,590 6. OTHER INCOME 2017 2016 RM RM Parking income 3,052,740 2,565,058 Event and advertising income 3,646,677 2,688,025 6,699,417 5,253,083 NOTES TO THE FINANCIAL STATEMENTS - CONT’D