AL-SALAM REIT ANNUAL REPORT 2018

AL-SALĀM REIT ANNUAL REPORT 2018 115 (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’s acquisition fee for the current inancial year is RM 1,550,000 (2017:nil). (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 inancial 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 inancial year is RM122,492 (2017: RM121,777). The inancial 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 inancial statements of the Group and of the Fund have been prepared in accordance with the applicable provisions of the Trust Deed dated 26 March 2015, 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”). 2.1 Adoption of Revised Malaysian Financial Reporting Standards In the current inancial year, the Group and the Fund adopted all the revised MFRSs issued by the Malaysian Accounting Standards Board (“MASB”) that are relevant to their operations and efective for annual periods beginning on or after 1 January 2018: MFRS 9 Financial Instruments MFRS 15 Revenue from Contracts with Customers Amendments to MFRS 2 Classiication and Measurement of Share-based Payment Transactions Amendments to MFRS 4 Applying MFRS 9 Financial Instruments with MFRS 4 Insurance Contracts Amendments to MFRS 140 Transfer of Investment Property Amendments to MFRSs Annual Improvements to MFRSs 2014 - 2017 Cycle IC Interpretation 22 Foreign Currency Transaction and Advance Consideration The adoption of these new MFRSs, amendments to MFRSs, and IC Interpretation did not result in signiicant changes to the accounting policies of the Group and the Fund and had no signiicant efect on the inancial performance or position of the Group and the Fund except for the adoption of MFRS 9 and MFRS 15 as disclosed in Note 27.