1.
GENERAL
(continued)
(e) Divestment fee
The Manager is entitled to receive a divestment fee of 0.5% of the sale price of any
authorised investment disposed directly or indirectly by the Trust, prorated if applicable to
the proportion of the Trust’s interest.
The divestment fee is payable to the Manager in the form of cash and/or Units (as the
Manager may elect) at the prevailing market price provided that in respect of any
divestment of real estate assets to interested parties, such a fee should, if required by the
applicable laws, rules and/or regulations, be in the form of Units issued by the Trust at
prevailing market price(s) and subject to such transfer restrictions as may be imposed.
Any payment to third party agents or brokers in connection with the divestment of any
authorised investments for the Trust shall be paid by the Manager to such persons out of
the Deposited Property of the Trust or the assets of the relevant special purpose vehicle,
and not out of the divestment fee received or to be received by the Manager.
2.
BASIS OF PREPARATION
(a) Statement of compliance
The financial statements have been prepared in accordance with the recommendations of
Statement of Recommended Accounting Practice (“RAP”) 7 “Reporting Framework for Unit
Trusts” issued by the Institute of Singapore Chartered Accountants, the applicable
requirements of the Code on Collective Investment Schemes (the “CIS Code”) issued by the
Monetary Authority of Singapore (“MAS”) and the provisions of the Trust Deed. RAP 7
requires that accounting policies adopted should generally comply with the principles
relating to recognition and measurement of the Singapore Financial Reporting Standards
(“FRS”).
(b) Basis of measurement
The financial statements have been prepared on the historical cost basis except for the
following material items on the statement of financial position:
• derivative financial instruments are measured at fair value
• investment properties are measured at fair value.
(c) Functional and presentation currency
Items included in the financial statements of each entity in the Group are measured using
the currency that best reflects the economic substance of the underlying events and
circumstances relevant to that entity (the “functional currency”). The consolidated financial
statements of the Group are presented in Singapore dollars, which is the functional
currency of the Trust. All financial information presented in Singapore dollars has been
rounded to the nearest thousand, unless otherwise stated.
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