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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)
2.25 Segment reporting
For management purposes, the Group is organised into operating segments based on their products and services which are independently managed
by the respective segment managers responsible for the performance of the respective segments under their charge. The segment managers report
directly to the management of the Group who regularly review the segment results in order to allocate resources to the segments and to assess the
segment performance. Additional disclosures on each of these segments are shown in Note 42, including the factors used to identify the reportable
segments and the measurement basis of segment information.
2.26 Ordinary share capital and share issuance expenses
An equity instrument is any contract that evidences a residual interest in the assets of the Group and of the Company after deducting all of its liabilities.
Ordinary shares are equity instruments.
Ordinary shares are recorded at the proceeds received, net of directly attributable incremental transaction costs. Ordinary shares are classified as equity.
Dividends on ordinary shares are recognised in equity in the period in which they are declared.
2.27 Treasury shares
When shares of the Company, that have not been cancelled, recognised as equity are reacquired, the amount of consideration paid is recognised directly
in equity. Reacquired shares are classified as treasury shares and presented as a deduction from total equity. No gain or loss is recognised in profit
or loss on the purchase, sale, issue or cancellation of treasury shares. When treasury shares are reissued by resale, the difference between the sales
consideration and the carrying amount is recognised in equity.
2.28 Contingencies
A contingent liability or asset is a possible obligation or asset that arises from past events and whose existence will be confirmed only by the occurrence
or non-occurrence of uncertain future event(s) not wholly within the control of the Group.
Contingent liabilities and assets are not recognised in the statements of financial position of the Group.
2.29 Resident loans
Resident loans are measured at the principal amount less any accumulated deferred management fees. Resident loans are non-interest bearing and
are payable at the end of the resident contract. Average tenure periods for residents are for an extended period of time greater than one year, however,
they are classified as current liabilities because the trust does not have an unconditional right to defer settlement greater than 12 months.
3. Significant accounting judgements and estimates
The preparation of the Group’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts
of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the reporting date. However, uncertainty about these assumptions
and estimates could result in outcomes that could require a material adjustment to the carrying amount of the asset or liability affected in the future.
3.1 Judgements made in applying accounting policies
In the process of applying the Group’s accounting policies, management has made the following judgements, apart from those involving estimations,
which have the most significant effect on the amounts recognised in the financial statements: