AL-SALAM REIT ANNUAL REPORT 2020

126 AL-SALĀM REIT NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 (CONT’D) 2. SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) 2.3 Standards and interpretations issued but not yet effective T he standards and interpretations that are issued but not yet effective are disclosed below. The Group and the Fund intend to adopt these standards, if applicable, when they become effective: Effective for annual periods beginning Description on or after Amendments to MFRS 9, MFRS 139 and MFRS 7, MFRS 4 and MFRS 16: Interest Rate Benchmark Reform - Phase 2 1 January 2021 Amendments to MFRS 3: Reference to the Conceptual Framework 1 January 2022 Amendments to MFRS 116: Property, Plant and Equipment - Proceeds before Intended Use 1 January 2022 Amendments to MFRS 137 Provition, Contingent Liabilities and Contingent Assets: Onerous Contracts - Cost of Fulfilling a Contract 1 January 2022 Annual improvements to MFRS Standards 2018 - 2020 1 January 2022 Amendments to MFRS 101: Classification of Liabilities as Current or Non-current 1 January 2023 MFRS 17 Insurance Contracts 1 January 2023 Amendments to MFRS 17 Insurance Contracts 1 January 2023 Amendments to MFRS 10 and MFRS 128: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture Deferred T he Group and the Fund expect that the adoption of the above standards and interpretations will have no material impact on the financial statements in the period of application. 2.4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of consolidation T he consolidated financial statements comprise the financial statements of the Fund and its subsidiaries as at the end of the reporting period. The financial statements of the subsidiaries used in the preparation of the consolidated financial statements are prepared for the same reporting date as the Fund. Consistent accounting policies are applied to like transactions and events in similar circumstances. The Fund controls an investee if and only if the Fund has all the following: (i) Power over the investee (such as existing rights that give it the current ability to direct the relevant activities of the investee); (ii) Exposure, or rights, to variable returns from its involvement with the investee; and (iii) The ability to use its power over the investee to affect its returns. W hen the Group has less than a majority of the voting rights of an investee, the Fund considers the following in assessing whether or not the Fund’s voting rights in an investee are sufficient to give it power over the investee: (i) The contractual arrangement with the other vote holders of the investee; (ii) Rights arising from other contractual arrangements; and (iii) The Fund’s voting rights and potential voting rights. S ubsidiaries are consolidated when the Group obtains control over the subsidiary and ceases when the Fund loses control of the subsidiary. All intra-group balances, income and expenses and unrealised gains and losses resulting from intra-group transactions are eliminated in full.