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Annual Report 2013
KPJ HEALTHCARE BERHAD
177
2.
Summary of signi cant accounting policies (continued)
2.2
Changes in accounting policies (continued)
MFRS 11 Joint Arrangements (continued)
The classi cation of joint arrangements under MFRS 11 is determined based on the rights and obligations of the parties to the joint
arrangements by considering the structure, the legal form, the contractual terms agreed by the parties to the arrangement and
when relevant, other facts and circumstances. Under MFRS 11, joint arrangements are classi ed as either joint operations or joint
ventures.
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets,
and obligations for the liabilities, relating to the arrangement. A joint venture is a joint arrangement whereby the parties that have
joint control of the arrangement have rights to the net assets of the arrangement.
MFRS 11 removes the option to account for jointly controlled entities (“JCE”) using proportionate consolidation. Instead, JCE that
meet the de nition of a joint venture must be accounted for using the equity method. The application of MFRS 11 has no impact on
the Group’s nancial position or performance.
MFRS 12 Disclosures of Interests in Other Entities
MFRS 12 includes all disclosure requirements for interests in subsidiaries, joint arrangements, associates and structured entities.
A number of new disclosures are required. This standard affects disclosures only and has no impact on the Group’s nancial
position or performance.
MFRS 13 Fair Value Measurement
MFRS 13 establishes a single source of guidance under MFRS for all fair value measurements. MFRS 13 does not change when
an entity is required to use fair value, but rather provides guidance on how to measure fair value under MFRS. MFRS 13 de nes
fair value as an exit price. As a result of the guidance in MFRS 13, the Group re-assessed its policies for measuring fair values,
in particular, its valuation inputs such as non-performance risk for fair value measurement of liabilities. MFRS 13 also requires
additional disclosures.
Application of MFRS 13 has not materially impacted the fair value measurement of the Group. Additional disclosures where
required, are provided in the individual notes relating to the assets and liabilities whose fair values were determined.
Amendments to MFRS 101: Presentation of Items of Other Comprehensive Income
The amendments toMFRS 101 introduce a grouping of items presented in other comprehensive income. Items that will be reclassi ed
(“recycled”) to pro t or loss at a future point in time (such as net loss or gain on available-for-sale nancial assets) have to be
presented separately from items that will not be reclassi ed (such as revaluation of land and buildings). The amendments affect
presentation only and have no impact on the Group’s nancial position or performance.
MFRS 127 Separate Financial Statements
As a consequence of the new MFRS 10 and MFRS 12, MFRS 127 is limited to accounting for subsidiaries, joint controlled entities
and associates in separate nancial statements. This standard affects disclosures only and has no impact on the Group’s nancial
position or performance.
Notes to the
Financial Statements
For the financial year ended 31 December 2013
(continued)