2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.13 Investments in associates (continued)
Under the equity method, the investment in an associate is initially recognised at cost. The carrying amount of the
investment is adjusted to recognise changes in the Group’s share of net assets of the associate since the acquisition
date. Goodwill relating to the associate is included in the carrying amount of the investment and is not tested for
impairment individually.
The statement of profit or loss reflects the Group’s share of the results of operations of the associate. Any change in
OCI of those investees is presented as part of the Group’s OCI. In addition, when there has been a change recognised
directly in the equity of the associate, the Group recognises its share of any changes, when applicable, in the statement
of changes in equity. Unrealised gains and losses resulting from transactions between the Group and the associate are
eliminated to the extent of the interest in the associate.
The aggregate of the Group’s share of profit or loss of an associate is shown on the face of the statement of profit or
loss outside operating profit and represents profit or loss after tax and non-controlling interests in the subsidiaries of
the associate.
The financial statements of the associate are prepared for the same reporting period as the Group. When necessary,
adjustments are made to bring the accounting policies in line with those of the Group.
After application of the equity method, the Group determines whether it is necessary to recognise an impairment loss
on its investment in its associate. At each reporting date, the Group determines whether there is objective evidence that
the investment in the associate is impaired. If there is such evidence, the Group calculates the amount of impairment
as the difference between the recoverable amount of the associate and its carrying value, then recognises the loss as
‘Share of profit of an associate’ in the statement of profit or loss.
Upon loss of significant influence over the associate, the Group measures and recognises any retained investment at its
fair value. Any difference between the carrying amount of the associate upon loss of significant influence or joint control
and the fair value of the retained investment and proceeds from disposal is recognised in profit or loss.
2.14 Current versus non-current classification
The Group presents assets and liabilities in statement of financial position based on current/non-current classification.
An asset is current when it is:
(i) expected to be realised or intended to be sold or consumed in normal operating cycle;
(ii) held primarily for the purpose of trading;
(iii) expected to be realised within twelve months after the reporting period; or
(iv) cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve
months after the reporting period.
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Notes to the
Financial Statements
For the financial year ended 31 December 2014 (continued)
KPJ Healthcare Berhad annual report
2014
