1 GENERAL (CONTINUED)
1.5 Divestment fees
Pursuant to the Trust Deed, the Manager is entitled to divestment fees of 0.5% (or such lower percentage
as may be determined by the Manager) of each of the following:
• the sale price of real estate sold or divested, whether directly or indirectly through one or more
SPVs by the Trust;
• the underlying value of any real estate which is taken into account when computing the sale price
for the equity interests of any holding directly or indirectly the real estate, divested whether directly
or indirectly through one or more SPVs, by the Trust; and
• the sale price of any investment sold by the Trust, whether directly or indirectly through one or
more SPVs, in any debt securities in any property corporation or other SPV owning or acquiring
real estate or any debt securities which are secured directly or indirectly by the rental income from
real estate.
The Manager may, at its sole discretion, elect to receive the divestment fee in cash or Units or a
combination of cash and Units. In respect of any divestment of real estate assets to interested parties,
such a fee should be in the form of Units issued by the Trust at prevailing market price(s). Such Units should
not be sold within one year from the date of their issuance.
2 BASIS OF PREPARATION
2.1 Statement of compliance
The financial statements have been prepared in accordance with the
Statement of Recommended
Accounting Practice (“RAP”) 7 (2012) “Reporting Framework for Unit Trusts”
issued by the Institute of
Singapore Chartered Accountants (“ISCA”), and 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 (2012) requires the accounting policies to 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 a historical cost basis except for the investment
properties and financial derivatives which are stated at fair value as set out in the accounting policies
described below.
2.3 Functional and presentation currency
These financial statements 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.
Year ended 31 December 2014
NOTES TO THE FINANCIAL STATEMENTS
SABANA REIT
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ANNUAL REPORT 2014
103
