AL-SALAM REIT ANNUAL REPORT 2018

AL-SALĀM REIT ANNUAL REPORT 2018 119 items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when fair valuewas determined. Non-monetary items that aremeasured in terms of historical cost in a foreign currency are not retranslated. Exchange diferences arising on the settlement of monetary items, and on the retranslation of monetary items, are included in proit or loss for the year. Exchange diferences arising on the retranslation of non-monetary items carried at fair value are included in proit or loss for the year except for diferences arising on the retranslation of non-monetary items in respect of which gains and losses are recognised directly in other comprehensive income. For such non-monetary items, any exchange component of the gain or loss is also recognised directly in other comprehensive income. Revenue recognition Prior to the adoption of MFRS 15, the Group’s and the Fund’s revenue are recognised at fair value of the consideration received or receivable for the sale of goods and services in the ordinary course of the Group’s and the Fund’s activities. With the adoption of MFRS 15 “Revenue from Contracts with Customers” in the current inancial year, the Group’s and the Fund’s revenue from contracts with customers are recognised by reference to each distinct performance obligation in the contract with customer. A contract with customer exists when the contract has commercial substance, the Group, the Fund and their customers have approved the contract and intend to perform their respective obligations, the Group’s, the Fund’s and the customer’s rights regarding the goods or services to be transferred and the payment terms can be identiied, and it is probable that the Group and the Fund will collect the consideration to which it will be entitled to in exchange of those goods or services. Revenue from contracts with customers is measured at its transaction price, being the amount of consideration which the Group and the Fund expect to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties such as sales and service taxes or goods and service tax. If the amount of consideration varies due to discounts, rebates, penalties or other similar items, the Group and the Fund estimate the amount of consideration that it expects to be entitled based on the expected value method or the most likely outcome but the estimation is constrained up to the amount that is highly probable of no signiicant reversal in the future. Transaction price is allocated to each performance obligation on the basis of the relative standalone selling prices of each distinct good or service promised in the contract. Depending on the substance of the contract, revenue is recognised when the performance obligation is satisied, which may be at a point in time or over time. (a) Gross rental income Revenue from rental of investment properties, including service charges, are recognised on a straight line basis in accordance with terms and conditions of the tenancy agreement between the Group and its tenants. (b) Percentage rent Rental income earned from certain tenants include percentage rent clauses whereby rent received and/or receivable is the higher of base rent and a percentage of sales earned by the tenant during the inancial year. Percentage rent is recognised when it can be reliably measured by the Group. (c) Investment income Investment income, which comprise income earned from Islamic ixed deposit placements, are recognised on an accrual basis. (d) Parking income and events and advertising income Parking income and events and advertising income are recognised on an accruals basis in the accounting period in which the services are being rendered.