Al-`Aqar Healthcare REIT Annual Report 2020

AL-`AQAR HEALTHCARE REIT Annual Report 2020 116 1. Corporate information (cont’d) (ii) Manager’s fee Pursuant to the Second Restated Trust Deed dated 25 November 2019, the Manager is entitled to receive the following fees from the Fund: (a) Management fee of 0.1% per annum of the gross assets value of the Fund that is below RM1,000,000,000 and 0.125% of the gross assets value of the Fund that exceeds RM1,000,000,000 calculated based on monthly accrual basis and payable monthly in arrears; The Management fee for the current financial year is RM1,837,356 (2019: RM1,719,328). (b) An acquisition fee of 1% of the acquisition price of any investment property purchased directly or indirectly by the Fund which is payable after the completion of the acquisition; and The acquisition fee to the Manager during the current financial year is RMNil (2019: RM780,000). (c) A disposal fee of 0.5% of the disposal price of any investment property to be disposed directly or indirectly by the Fund which is payable upon completion of the disposal. There is no disposal fee to the Manager during the current and previous financial years. (iii) Trustee’s fee Pursuant to the Second Restated Trust Deed dated 25 November 2019, the Trustee is entitled to receive a fee of up to 0.04% 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 financial year ended 31 December 2020 of RM393,361 (2019: RM284,114) is determined based on 0.03% (2019: 0.03%) of the monthly net asset value. Prior to the execution of the Second Restated Trust Deed, the Trustee is entitled to receive a fee of up to 0.03% per annum of the net asset value of the Fund. The financial statements of the Group and of the Fund were authorised by the board of directors of the Manager for issuance on 18 February 2021. 2. Significant accounting policies 2.1 Basis of preparation The financial statements of the Group and of the Fund have been prepared in accordance with the applicable provisions of the Second Restated Trust Deed dated 25 November 2019, Malaysian Financial Reporting Standards (“MFRS”) as issued by the Malaysian Accounting Standards Board, International Financial Reporting Standards and the requirements of the Securities Commission Malaysia’s Guidelines on Real Estate Investment Trusts and Islamic Real Estate Investment Trusts (“SC Guidelines”). These financial statements also comply with the applicable disclosure provisions of the Listing Requirements of Bursa Malaysia Securities. The financial statements of the Group and the Fund are prepared under the historical cost basis except for investment properties and applicable financial instruments that have been measured at their fair values. The financial statements are presented in Ringgit Malaysia (“RM”) except when otherwise stated. As of 31 December 2020, the current liabilities of the Group has exceeded the current assets by RM475,258,715. The net current liabilities position are mainly derived from the IMTNs of RM575,000,000 which will due in May 2021 as disclosed in Note 18. Notes to the Financial Statements For the Year Ended 31 December 2020