2. Significant accounting policies (cont'd.) 2.4 Summary of significant accounting policies (cont'd.) (b) Revenue recognition (cont'd.) (ii) Other income (cont'd.) An entity transfer control of a good or service over time and, therefore, satisfies a performance obligation and recognises revenue over time, if one of the following criteria is met: (i) The customer simultaneously receives and consumes the benefits provided by the entity’s performance as the entity performs; or (ii) The entity’s performance creates or enhances an asset (for example, work in progress) that the customer controls as the asset is created or enhanced; or (iii) The entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for payment completed to date. If a performance obligation is not satisfied over time, an entity satisfied the performance obligation at a point in time. (a) Parking income and event 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. (b) Investment income Investment income, which comprise income earned from Islamic fixed deposit placements, are recognised on an accrual basis. (c) Income distribution Income distributions are recognised as a liability when they are approved by Trustee and the board of directors of the Manager. Interim distributions are deducted from unitholders' funds when they are paid. Income distribution to unitholders that are declared after the reporting period are not recognised as a liability at the end of the reporting period. (d) Taxation (i) Current income tax Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted, or substantively enacted, at the reporting date in the countries where the Group operates and generates taxable income. Current income tax relating to items recognised directly in other comprehensive income or equity is recognised in OCI or in equity and not in the statement of profit or loss. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. In accordance with Section 61A(1) of the Income Tax Act 1967, the total income of the Fund will be exempted from income tax provided that at least 90% of the total taxable income of the Fund is distributed to unitholders within two months from the end of the reporting period. A L - S A L Ā M R E I T A N N U A L R E P O R T 2 0 2 1 146 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2021 (CONT’D)
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