(C) ACCOUNTABILITY AND AUDIT
Accountability
Principle 10:
The Board should present a balanced and understandable assessment of the company’s
performance, position and prospects.
The Manager provides Unitholders with quarterly and annual financial statements. In presenting the
annual and quarterly financial statements to Unitholders, the Board aims to provide Unitholders with
a balanced, clear and understandable assessment of Ascott Reit’s performance, position and
prospects. In order to achieve this, Management provides the Board with management accounts on
a monthly basis and such explanation and information as any Director may require, to enable the
Directors to keep abreast, and make a balanced and informed assessment, of Ascott Reit’s financial
performance, position and prospects.
The Manager believes in conducting itself in ways that seek to deliver maximum sustainable value to
Unitholders. Best practices are promoted as a means to build an excellent business for Unitholders
and the Manager is accountable to Unitholders for Ascott Reit’s performance. Prompt fulfilment of
statutory reporting requirements is but one way to maintaining Unitholders’ confidence and trust in
the capability and integrity of the Manager.
Risk Management and Internal Controls
Principle 11:
The Board is responsible for the governance of risk. The Board should ensure that
Management maintains a sound system of risk management and internal controls to safeguard
shareholders’ interests and the company’s assets, and should determine the nature and extent
of the significant risks which the Board is willing to take in achieving its strategic objectives.
The Manager has in place an adequate and effective system of internal controls addressing material
financial, operational, compliance and information technology risks to safeguard Unitholders’
interests and Ascott Reit’s assets.
The Board has overall responsibility for the governance of risk and exercises oversight of the risk
management strategy and framework. The AC assists the Board in strengthening the Manager’s risk
management capabilities for Ascott Reit and its subsidiaries (Ascott Reit Group).
In carrying out this responsibility, in particular, the AC:
(a) makes recommendations to the Board on the risk appetite including associated risk parameters
for Ascott Reit Group;
(b) oversees Management in the formulation, updating and maintenance of an adequate and
effective risk management framework, policies and strategies for managing risks that are
consistent with the approved risk appetite and parameters for Ascott Reit Group and report to
the Board on its decisions on any material matters concerning the aforementioned;
(c) makes the necessary recommendations to the Board such that an opinion and comment
regarding the adequacy and effectiveness of the risk management and internal control systems
can be made by the Board in the annual report of Ascott Reit in accordance with the Listing
Manual and the Code; and
(d) reports to the Board on any material breaches of risk limits and the adequacy of any proposed
action.
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