AL-SALAM REIT ANNUAL REPORT 2020

125 ANNUAL REPORT 2020 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 (CONT’D) 1. CORPORATE INFORMATION (CONT’D) (b) Manager’s fees (cont’d) (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 financial year. (c) Trustee’s fees P ursuant 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 RM124,660 (2019: RM123,539). T he 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 T he financial statements of the Group and of the Fund have been prepared 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”). These financial statements also comply with the applicable disclosure provisions of the Listing Requirements of Bursa Malaysia Securities Berhad. T he 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. T he Group and the Fund incurred a loss net tax of RM13,530,646 and RM13,471,451 respectively during the financial year ended 31 December 2020 and, as of that date, the Group and the Fund have net current liabilities of RM3,622,194 and RM8,692,037 respectively. In the opinion of the Manager, the Group and the Fund will be able to meet their obligations and liabilities as and when they fall due. The financial statements are presented in Ringgit Malaysia (“RM”) except when otherwise stated. 2.2 Changes in accounting policies T he accounting policies adopted are consistent with those of the previous financial year, except in the current period, the Group and the Fund adopted the following new and amended MFRSs mandatory for annual financial periods beginning on or after 1 January 2020: Effective for annual period beginning Description on or after Amendments to MFRS 3: Definition of a Business 1 January 2020 Amendments to MFRS 9, MFRS 139 and MFRS 7: Interest Rate Benchmark Reform 1 January 2020 Amendments to MFRS 101: Definition of Material 1 January 2020 Amendments to MFRS 108: Definition of Material 1 January 2020 References to the Conceptual Framework in MFRS Standards 1 January 2020 Amendment to MFRS 16: Covid-19 Related Rent Concessions 1 June 2020 Amendments to MFRS 4: Extension of the Temporary Exemption from Applying MFRS 9 17 August 2020 T he adoption of the above new and amended MFRSs did not have any significant financial impact to the Group and the Fund.