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Annual Report FY2012 ParkwayLife REIT
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1 General (cont’d)
(D) Project management fees
The Property Manager is entitled to receive a project management fee for each project undertaken, for the
development or redevelopment (if not prohibited by the Property Funds Appendix or if otherwise permitted by the
Monetary Authority of Singapore (“MAS”)), the refurbishment, retroftting and renovation of a property, based on
the capital expenditure of the project, amounting to:
(i) 5.0% of the capital expenditure of the project where the capital expenditure of the project is less than $1.0
million; or
(ii) 3.0% of the capital expenditure of the project where the capital expenditure of the project is more than or
equal to $1.0 million.
For the purpose of calculating the fees payable to the Property Manager, “capital expenditure” means all
construction costs and expenditure valued by the quantity surveyor engaged by the Trustee for the project,
excluding development charges, differential premiums, statutory payments, consultants’ professional fees and
goods and services tax.
2 Basis of preparation
2.1 Statement of compliance
The fnancial statements are prepared in accordance with the recommendations of Statement of Recommended
Accounting Practice (“RAP”) 7 “Reporting Framework for Unit Trusts” issued by the Institute of Certifed Public
Accountants of Singapore and the applicable requirements of the Code on Collective Investment Schemes (“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 recognition and measurement principles of Singapore
Financial Reporting Standards (“FRS”).
2.2 Basis of measurement
The fnancial statements have been prepared on the historical cost basis except for the following items:
- derivative fnancial instruments are measured at fair value; and
- investment properties are measured at fair value.
2.3 Functional and presentation currency
The fnancial statements of the Group and the Trust are presented in Singapore dollars, which is the Trust’s functional
currency. All fnancial information presented in Singapore dollars has been rounded to the nearest thousand, unless
otherwise stated.