Notes to The
Financial Statements
Year ended 31 December 2015
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), the refurbishment, retrofitting 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 financial 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 Singapore Chartered
Accountants
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 financial statements have been prepared on the historical cost basis except for the following items:
–
derivative financial instruments are measured at fair value; and
–
investment properties are measured at fair value.
2.3 Functional and presentation currency
The financial statements of the Group and the Trust are presented in Singapore dollars, which is the Trust’s
functional currency. All financial information presented in Singapore dollars have been rounded to the nearest
thousand, unless otherwise stated.
98
ParkwayLife REIT
Annual Report 2015
