Page 145 - KPJ_2011

2. Summary of significant accounting policies (continued)
2.7 Property, plant and equipment (continued)
Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the
asset and the net amount is restated to the revalued amount of the asset. The revaluation surplus included in
the asset revaluation reserve in respect of an asset is transferred directly to retained earnings on retirement or
disposal of the asset.
Freehold land has an unlimited useful life and therefore is not depreciated. Depreciation is computed on a
straight-line basis over the estimated useful lives of the assets as follows:
Capital work-in-progress included in plant and equipment are not depreciated as these assets are not yet
available for use.
The carrying values of property, plant and equipment are reviewed for impairment when events or changes in
circumstances indicate that the carrying value may not be recoverable.
The residual value, useful life and depreciation method are reviewed at each mnancial year end, and adjusted
prospectively, if appropriate.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benemts
are expected from its use or disposal. Any gain or loss on derecognition of the asset is included in the promt or
loss in the year the asset is derecognised.
2.8 Investment properties
Investment properties are initially measured at cost, including transaction costs. Subsequent to initial recognition,
investment properties are measured at fair value which renects market conditions at the reporting date. Fair
value is arrived at by reference to market evidence of transaction prices for similar properties and is performed
by registered independent valuers having an appropriate recognised professional qualimcation and recent
experience in the location and category of the properties being valued. Gains or losses arising from changes in
the fair values of investment properties are included in promt or loss in the year in which they arise.
A property interest under an operating lease is classimed and accounted for as an investment property on a
property-by-property basis when the Group holds it to earn rentals or for capital appreciation or both. Any such
property interest under an operating lease classimed as an investment property is carried at fair value.
Investment properties are derecognised when either they have been disposed of or when the investment
property is permanently withdrawn from use and no future economic benemt is expected from its disposal. Any
gain or loss on the retirement or disposal of an investment property is recognised in promt or loss in the year of
retirement or disposal.
2.9 Intangible assets - Goodwill
Goodwill is initially measured at cost. Following initial recognition, goodwill is measured at cost less accumulated
impairment losses.
For the purpose of impairment testing, goodwill acquired is allocated, from the acquisition date, to each of the
Group’s cash-generating units that are expected to benemt from the synergies of the combination.
The cash-generating unit to which goodwill has been allocated is tested for impairment annually and
whenever there is an indication that the cash-generating unit may be impaired, by comparing the carrying
amount of the cash-generating unit, including the allocated goodwill, with the recoverable amount of the
cash-generating unit. Where the recoverable amount of the cash-generating unit is less than the carrying
amount, an impairment loss is recognised in the promt or loss. Impairment losses recognised for goodwill are
not reversed in subsequent periods.
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2011 (continued)
Buildings 2%
Renovation 10%
Medical and other equipment 7.5% - 25%
Furniture and mttings 10% - 20%
Motor vehicles 20%
Computers 20% - 30%
ANNUAL REPORT 2011 140