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Notes to the financial statements
31 December 2012
(continued)
Annual Report 2012 KPJ Healthcare Berhad
2. Summary of significant accounting policies (continued)
2.3 Standards issued but not yet effective (continued)
d) Amendments to MFRS 101: Presentation of Financial Statements (Annual Improvements 2009-2011 Cycle)
The amendments to MFRS 101 change the grouping of items presented in other comprehensive income. Items that could be reclassified (or
recycled) to profit or loss at a future point in time (for example, exchange differences on translation of foreign operations and net loss or gain on
available-for-sale financial assets) would be presented separately from items which will never be reclassified (for example, revaluation of land and
buildings). The amendment affects presentation only and has no impact on the Group’s financial position and performance.
e) MFRS 9 Financial Instruments: Classification and Measurement
MFRS 9 reflects the first phase of the work on the replacement of MFRS 139 Financial Instruments: Recognition and Measurement and applies
to classification and measurement of financial assets and financial liabilities as defined in MFRS 139 Financial Instruments: Recognition and
Measurement. The adoption of the first phase of MFRS 9 will have an effect on the classification and measurement of the Group’s financial assets.
The Group will quantify the effect in conjunction with the other phases, when the final standard including all phases is issued.
2.4 Basis of consolidation
The consolidated financial statements comprise the financial statements of the Group and its subsidiaries as at 31 December 2012.
Subsidiaries are consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to be consolidated until the
date when such control ceases. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using
consistent accounting policies. All intra-group balances, transactions, unrealised gains and losses resulting from intra-group transactions and dividends
are eliminated in full.
Total comprehensive income within a subsidiary is attributed to the non-controlling interest even if it results in a deficit balance.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Group loses control over
a subsidiary, it:
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Derecognises the assets (including goodwill) and liabilities of the subsidiary;
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Derecognises the carrying amount of any non-controlling interest;
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Derecognises the cumulative translation differences recorded in equity;
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Recognises the fair value of the consideration received;
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Recognises the fair value of any investment retained;
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Recognises any surplus or deficit in profit or loss; and
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Reclassifies the parent’s share of components previously recognised in other comprehensive income to profit or loss or retained earnings, as
appropriate.
2.5 Business combinations
Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration
transferred measured at acquisition date fair value and the amount of any non-controlling interest in the acquiree. For each business combination, the
Group elects whether to measure the non-controlling interest in the acquiree at fair value or at the proportionate share of the acquiree’s identifiable net
assets. Acquisition-related costs are expensed as incurred and included in administrative expenses.
When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance
with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. This includes the separation of embedded
derivatives in host contracts by the acquiree.