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Annual Report 2013
KPJ HEALTHCARE BERHAD
183
2.
Summary of signi cant accounting policies (continued)
2.8
Investment properties
Investment properties are initially measured at cost, including transaction costs. Subsequent to initial recognition, investment
properties are measured at fair value which re ects market conditions at the reporting date. Fair value is arrived at by reference
to market evidence of transaction prices for similar properties and is performed by registered independent valuers having an
appropriate recognised professional quali cation and recent experience in the location and category of the properties being
valued. Gains or losses arising from changes in the fair values of investment properties are included in pro t or loss in the year in
which they arise.
A property interest under an operating lease is classi ed and accounted for as an investment property on a property-by-property
basis when the Group holds it to earn rentals or for capital appreciation or both. Any such property interest under an operating
lease classi ed as an investment property is carried at fair value.
Investment properties are derecognised when either they have been disposed of or when the investment property is permanently
withdrawn from use and no future economic bene t is expected from its disposal. Any gain or loss on the retirement or disposal of
an investment property is recognised in pro t or loss in the year of retirement or disposal.
2.9
Intangible assets
(a)
Goodwill
Goodwill is initially measured at cost. Following initial recognition, goodwill is measured at cost less accumulated impairment
losses.
For the purpose of impairment testing, goodwill acquired is allocated, from the acquisition date, to each of the Group’s cash-
generating units that are expected to bene t from the synergies of the combination.
The cash-generating unit to which goodwill has been allocated is tested for impairment annually and whenever there is an
indication that the cash-generating unit may be impaired, by comparing the carrying amount of the cash-generating unit,
including the allocated goodwill, with the recoverable amount of the cash-generating unit. Where the recoverable amount of
the cash-generating unit is less than the carrying amount, an impairment loss is recognised in the pro t or loss. Impairment
losses recognised for goodwill are not reversed in subsequent periods.
Where goodwill forms part of a cash-generating unit and part of the operation within that cash-generating unit is
disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation
when determining the gain or loss on disposal of the operation. Goodwill disposed of in this circumstance is measured
based on the relative fair values of the operations disposed of and the portion of the cash-generating unit retained.
Goodwill and fair value adjustments arising on the acquisition of foreign operations are treated as assets and liabilities of the
foreign operations and are recorded in the functional currency of the foreign operations and translated in accordance with
the accounting policy set out in Note 2.6.
Notes to the
Financial Statements
For the financial year ended 31 December 2013
(continued)