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Annual Report 2013
KPJ HEALTHCARE BERHAD
179
2.
Summary of signi cant accounting policies (continued)
2.4
Basis of consolidation
The consolidated nancial statements comprise the nancial statements of the Company and its subsidiaries as at the reporting
date. The nancial statements of the subsidiaries used in the preparation of the consolidated nancial statements are prepared
for the same reporting date as the Company. Consistent accounting policies are applied to like transactions and events in similar
circumstances.
The Company controls an investee if and only if the Company has all the following:
(i)
Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee);
(ii) Exposure, or rights, to variable returns from its investment with the investee; and
(iii) The ability to use its power over the investee to affect its returns.
When the Company has less than a majority of the voting rights of an investee, the Company considers the following in assessing
whether or not the Company’s voting rights in an investee are suf cient to give it power over the investee:
(i)
The size of the Company’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders;
(ii)
Potential voting rights held by the Company, other vote holders or other parties;
(iii) Rights arising from other contractual arrangements; and
(iv) Any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct
the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’
meetings.
Subsidiaries are consolidated when the Company obtains control over the subsidiary and ceases when the Company loses control
of the subsidiary. All intra-group balances, income and expenses and unrealised gains and losses resulting from intra-group
transactions are eliminated in full.
Losses within a subsidiary are attributed to the non-controlling interests even if that results in a de cit balance.
Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are
accounted for as equity transactions. The carrying amounts of the Group’s interests and the non-controlling interests are adjusted
to re ect the changes in their relative interests in the subsidiaries. The resulting difference is recognised directly in equity and
attributed to owners of the Company.
When the Group loses control of a subsidiary, a gain or loss calculated as the difference between (i) the aggregate of the fair value
of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets and
liabilities of the subsidiary and any non-controlling interest, is recognised in pro t or loss. The subsidiary’s cumulative gain or loss
which has been recognised in other comprehensive income and accumulated in equity are reclassi ed to pro t or loss or where
applicable, transferred directly to retained earnings. The fair value of any investment retained in the former subsidiary at the date
control is lost is regarded as the cost on initial recognition of the investment.
Notes to the
Financial Statements
For the financial year ended 31 December 2013
(continued)