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175
Notes to the financial statements
31 December 2012
(continued)
Annual Report 2012 KPJ Healthcare Berhad
3. Significant accounting judgements and estimates (continued)
3.2 Key sources of estimation uncertainty (continued)
(e) Capitalisation and amortisation of software development expenditure
The Group capitalised costs relating to the software development and enhancement of its new and existing facilities respectively, upon meeting
all the criteria for capitalisation as described in Note 2.9(b). Amortisation, which commences upon commercialisation, is recognised in profit or
loss based on a straight-line basis over the products’ estimated economic lives of five years. The Group reviews the amortisation period and
amortisation method at least once a year.
However, if there are indications that the products are unable to meet expected future cash flow, immediate impairment loss will be recognised.
Details of software development expenditure is disclosed in Note 19.
4. Revenue
Group
Company
2012
2011
2012
2011
RM’000
RM’000
RM’000
RM’000
Hospital charges
804,304
660,154
-
-
Consultation fees
590,492
535,962
-
-
Sale of pharmaceutical, medical and surgical products
646,812
660,478
-
-
Other hospital revenue
- clinics rental
12,308
10,955
-
-
- others
11,172
11,933
-
-
Dividend income from subsidiaries
-
-
106,039
100,582
Interest income
-
-
2,370
3,168
Management fees
-
-
32,786
32,849
Other revenue
31,009
29,511
-
-
2,096,097
1,908,993
141,195
136,599
5. Finance income and costs
Group
Company
2012
2011
2012
2011
RM’000
RM’000
RM’000
RM’000
Finance costs
Finance cost on Islamic facilities
756
561
-
-
Accretion of interest
326
309
-
-
Interest expense
- commercial papers
10,850
8,850
-
8,850
- overdrafts
121
144
-
-
- term loans
1,850
1,720
-
-
- Hiwalah term loan
-
123
-
-
- revolving credits
4,975
3,719
3,085
1,763
- Al-Amin
162
51
-
-
- lease and hire purchase
707
838
-
-
- others
3,856
3,373
10,885
9,030
23,603
19,688
13,970
19,643
Finance income
Interest income on short term deposits
12,535
10,295
-
-
Net finance costs
11,068
9,393
13,970
19,643