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Annual Report 2013
KPJ HEALTHCARE BERHAD
185
2.
Summary of signi cant accounting policies (continued)
2.10 Impairment of non- nancial assets (continued)
An assessment is made at each reporting date as to whether there is any indication that previously recognised impairment losses
may no longer exist or may have decreased. A previously recognised impairment loss is reversed only if there has been a change in
the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the case,
the carrying amount of the asset is increased to its recoverable amount. That increase cannot exceed the carrying amount that
would have been determined, net of depreciation, had no impairment loss been recognised previously. Such reversal is recognised
in pro t or loss unless the asset is measured at revalued amount, in which case the reversal is treated as a revaluation increase.
Impairment loss on goodwill is not reversed in a subsequent period.
2.11 Non-current assets (or disposal groups) classi ed as assets held for sale
Non-current assets (or disposal groups) are classi ed as assets held for sale if their carrying amount will be recovered principally
through a sale transaction rather than through continuing use. This condition is regarded asmet onlywhen the sale is highly probable
and the asset is available for immediate sale in its present condition subject only to terms that are usual and customary.
Immediately before classi cation as held for sale, the measurement of the non-current assets is brought up-to-date in accordance
with applicable MFRS. Then, on initial classi cation as held for sale, non-current assets (other than investment properties, deferred
tax assets, employee bene ts assets, nancial assets and inventories) are measured in accordance with MFRS 5 that is at the
lower of carrying amount and fair value less costs to sell. Any differences are included in the pro t or loss.
2.12 Subsidiaries
A subsidiary is an entity over which the Group 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.
In the Company’s separate nancial statements, investments in subsidiaries are accounted for at cost less impairment losses. On
disposal of such investments, the difference between net disposal proceeds and their carrying amounts is included in pro t or
loss.
Subsidiaries are consolidated using the acquisition method of accounting except for Johor Specialist Hospital Sdn Bhd and Ipoh
Specialist Hospital Sdn Bhd which were consolidated using the merger method of accounting as disclosed in Note 2.5.
2.13 Investments in associates
An associate is an entity in which the Group has signi cant in uence. Signi cant in uence is the power to participate in the
nancial and operating policy decisions of the investee but is not control or joint control over those policies.
Notes to the
Financial Statements
For the financial year ended 31 December 2013
(continued)