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Annual Report 2013
KPJ HEALTHCARE BERHAD
194
2.
Summary of signi cant accounting policies (continued)
2.26 Share capital and share issuance expenses
An equity instrument is any contract that evidences a residual interest in the assets of the Group and of the Company after deducting
all of its liabilities. Ordinary shares are equity instruments.
Ordinary shares are recorded at the proceeds received, net of directly attributable incremental transaction costs. Ordinary shares
are classi ed as equity. Dividends on ordinary shares are recognised in equity in the period in which they are declared.
2.27 Treasury shares
When shares of the Company, that have not been cancelled, recognised as equity are reacquired, the amount of consideration paid
is recognised directly in equity. Reacquired shares are classi ed as treasury shares and presented as a deduction from total equity.
No gain or loss is recognised in pro t or loss on the purchase, sale, issue or cancellation of treasury shares. When treasury shares
are reissued by resale, the difference between the sales consideration and the carrying amount is recognised in equity.
2.28 Contingencies
A contingent liability or asset is a possible obligation or asset that arises from past events and whose existence will be con rmed
only by the occurrence or non-occurrence of uncertain future event(s) not wholly within the control of the Group.
Contingent liabilities and assets are not recognised in the statements of nancial position of the Group.
2.29 Resident loans
Resident loans are measured at the principal amount less any accumulated deferred management fees. Resident loans are non-
interest bearing and are payable at the end of the resident contract. Average tenure periods for residents are for an extended period
of time greater than one year, however, they are classi ed as current liabilities because the trust does not have an unconditional
right to defer settlement greater than 12 months.
2.30 Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the
asset or transfer the liability takes place either:
(i)
In the principal market for the asset or liability, or
(ii) In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible to by the Group.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset
or liability, assuming that market participant act in their economic best interest.
A fair value measurement of a non- nancial asset takes into account a market participant’s ability to generate economic bene ts
by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and
best use.
Notes to the
Financial Statements
For the financial year ended 31 December 2013
(continued)