IREIT Global
annual report 2014
For the reporting period from 1 November 2013 (date of constitution) to 31 December 2014
Notes to the
Financial Statements
1.
GENERAL
(Continued)
(d) Leasing and marketing services fee
(Continued)
For leasing and marketing services, the Property Manager is entitled to the following
marketing services commissions:
– 0.5 month of Gross Revenue excluding service charge if a third party broker is
involved; or
– 1.5 months of Gross Revenue excluding service charge if there is no third party broker
involved.
2.
SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of preparation of financial statements
The financial statements have been prepared in accordance with International Financial
Reporting Standards (“IFRSs”) issued by the International Accounting Standards Board
(“IASB”), and are drawn up in accordance with the relevant provisions of the Trust Deed and
the relevant requirements of the Code on Collective Investment Schemes (the “CIS Code”)
issued by the Monetary Authority of Singapore (“MAS”).
The financial statements have been prepared on historical cost basis, except for investment
properties and certain financial instruments which are measured at fair values.
Historical cost is generally based on the fair value of the consideration given in exchange
for goods and services.
Fair value is the price that would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants at the measurement date, regardless
of whether that price is directly observable or estimated using another valuation technique.
In estimating the fair value of an asset or a liability, the Group takes into account the
characteristics of the asset or liability if market participants would take those characteristics
into account when pricing the asset or liability at the measurement date. Fair value for
measurement and/or disclosure purposes in these consolidated financial statements is
determined on such a basis, except for leasing transactions that are within the scope of IAS
17, and the measurements that have same similarities to fair value but are not fair value,
such as net realisable value in IAS 2 or value in use in IAS 36.
