AL-SALAM REIT ANNUAL REPORT 2019

Notes To The Financial Statements AL-SALĀM REIT • 115 ANNUAL REPORT 2019 For The Financial Year Ended 31 December 2019 (Cont’d) (c) Trustee’s fees Pursuant to the Deed dated 25 November 2019, 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 RM123,539 (2018: RM122,492). The financial statements of the Group and of the Fund were authorised by the Board of Directors of the Manager for issuance on 31 January 2020. 2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS The financial statements of the Group and of the Fund have been prepared in accordance in accordance with the applicable provisions of the Restated Trust Deed dated 25 November 2019, 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 Standards, Amendments to MFRS and Issue Committee Interpretation (“IC Interpretation”) issued In the current financial year, the Group and the Fund adopted all the revised MFRSs, Amendments to MFRS and IC Interpretation issued by the Malaysian Accounting Standards Board (“MASB”) that are relevant to their operations and effective for annual periods beginning on or after 1 January 2019: MFRS 16 Leases Amendments to MFRS 9 Prepayment Features with Negative Compensation Amendments to MFRS 128 Long-term Interests in Associates and Joint Ventures Amendments to MFRSs Annual Improvements to MFRSs 2015 - 2017 Cycle IC Interpretation 23 Uncertainty over Income Tax Payments The adoption of these new MFRSs, amendments to MFRSs, and IC Interpretation did not result in significant changes to the accounting policies of the Group and the Fund and had no significant effect on the financial performance or position of the Group and the Fund. 2.2 Standards, Amendments to MFRSs and IC Interpretations in issue but not yet effective At the date of the authorisation for issue of these financial statements, the new and revised Standards and Amendments which were in issue but not yet effective and not early adopted by the Group and the Fund are as listed below: MFRSs Amendments to References to the Conceptual Framework in MFRS Standards 1 Amendments to MFRS 3 Definition of a Business 1 Amendments to MFRS 101 and MFRS 108 Definition of Material 1 Amendments to IFRS 9, IAS 39 and MFRS 7 Interest Rate Benchmark Reform 1 Amendments to MFRS 10 Sale or Contribution of Assets between an Investor and its Associate or Joint and MFRS 128 Venture 2 1 Effective for annual periods beginning on or after 1 January 2020 2 Effective date deferred to a date to be announced by MASB The Manager anticipates that the abovementioned Standards and Amendments will be adopted in the annual financial statements of the Group and of the Fund when they become effective and that the adoption of these Standards and Amendments will have no material impact on the financial statements of the Group and of the Fund in the period of initial application.