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Annual Report 2013
KPJ HEALTHCARE BERHAD
225
20.
Impairment of assets (continued)
Recoverable amount based on value-in-use
The recoverable amount of a CGU is determined based on value-in-use calculations. These calculations use pre-tax cash ow projections
based on nancial budgets approved by the directors covering a ve-year period. Cash ows beyond the ve-year period are extrapolated
using the estimated growth rates stated below. The growth rate does not exceed the long-term average growth rate for the relevant
CGUs.
The key assumptions used in value-in-use calculations are as follows:
2013
2012
%
%
Gross margin
1
30
30
Growth rate
2
7
7
Discount rate
3
12
12
Terminal growth rate
5
5
Assumptions:
1
Budgeted gross margin
2
Weighted average growth rate used to extrapolate cash ows beyond the budget period
3
Pre-tax discount rate applied to the cash ow projections
The directors have determined budgeted gross margin based on past performance and expectations of market development. The discount
rates used are pre-tax and re ect speci c risks relating to the relevant segments.
21.
Deferred tax
Deferred tax assets and liabilities were offset when there is a legally enforceable right to set off current tax assets against current tax
liabilities and when the deferred taxes relate to the same tax authority. The following amounts, determined after appropriate offsetting,
are shown on the statements of nancial position:
Group
2013
2012
RM’000
RM’000
Deferred tax assets
25,678
15,601
Deferred tax liabilities
(47,153)
(43,857)
At 31 December
(21,475)
(28,256)
Notes to the
Financial Statements
For the financial year ended 31 December 2013
(continued)