2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.3 Standard issued but not yet effective (continued)
Amendments to MFRS 116 and MFRS 138: Clarification of Acceptable Methods of Depreciation and Amortisation
The amendments clarify that revenue reflects a pattern of economic benefits that are generated from operating a
business (of which the asset is part) rather than the economic benefits that are consumed through the use of an asset.
As a result, a revenue-based method cannot be used to depreciate property, plant and equipment and may only be used
in very limited circumstances to amortise intangible assets.
The amendments are effective prospectively for annual periods beginning on or after 1 January 2016, with early adoption
permitted. These amendments are not expected to have any impact to the Group as the Group has not used a revenue-
based method to depreciate its non-current assets.
Amendments to MFRS 10 and MFRS 128: Sale or Contribution of Assets between an Investor and its Associate or Joint
Venture
The amendments clarify that:
– gains and losses resulting from transactions involving assets that do not constitute a business, between investor and
its associate or joint venture are recognised in the entity’s financial statements only to the extent of unrelated
investors’ interests in the associate or joint venture; and
– gains and losses resulting from transactions involving the sale or contribution to an associate of a joint venture of
assets that constitute a business is recognised in full.
The amendments are to be applied prospectively to the sale or contribution of assets occurring in annual periods
beginning on or after 1 January 2016. Earlier application is permitted.
Amendments to MFRS 127: Equity Method in Separate Financial Statements
The amendments will allow entities to use the equity method to account for investments in subsidiaries, joint ventures
and associate in their separate financial statements. Entities already applying MFRS and electing to change to the equity
method in its separate financial statements will have to apply this change retrospectively. For first-time adopters of MFRS
electing to use the equity method in its separate financial statements, they will be required to apply this method from
the date of transition to MFRS. The amendments are effective for annual periods beginning on or after 1 January 2016,
with early adoption permitted. These amendments will not have any impact on the Group’s and the Company’s financial
statements.
Amendments to MFRS 101: Disclosure Initiatives
The amendments to MFRS 101 include narrow-focus improvements in the following five areas:
• Materiality
• Disaggregation and subtotals
• Notes structure
• Disclosure of accounting policies
• Presentation of items of other comprehensive income arising from equity accounted investments
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KPJ Healthcare Berhad annual report
2014
Notes to the
Financial Statements
For the financial year ended 31 December 2014 (continued)
