2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.14 Current versus non-current classification (continued)
All other assets are classified as non-current. A liability is current when:
(i) it is expected to be settled in normal operating cycle;
(ii) it is held primarily for the purpose of trading;
(iii) it is due to be settled within twelve months after the reporting period; or
(iv) there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
period.
The Group classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
2.15 Financial assets
Financial assets are recognised in the statement of financial position when, and only when, the Group and the Company
become a party to the contractual provisions of the financial instrument.
When financial assets are recognised initially, they are measured at fair value, plus, in the case of financial assets not
at fair value through profit or loss, directly attributable transaction costs.
The Group and the Company determine the classification of their financial assets at initial recognition, and the categories
include loans and receivables and available-for-sale financial assets.
(a) Loans and receivables
Financial assets with fixed or determinable payments that are not quoted in an active market are classified as
loans and receivables.
Subsequent to initial recognition, loans and receivables are measured at amortised cost using the effective interest
method. Gains and losses are recognised in profit or loss when the loans and receivables are derecognised or
impaired, and through the amortisation process.
Loans and receivables are classified as current assets, except for those having maturity dates later than 12 months
after the reporting date which are classified as non-current.
(b) Available-for-sale financial assets
Available-for-sale financial assets are financial assets that are designated as available for sale or are not classified
as financial assets at fair value through profit or loss, loans and receivables or held-to-maturity investments.
After initial recognition, available-for-sale financial assets are measured at fair value. Any gains or losses from
changes in fair value of the financial asset are recognised in other comprehensive income, except that impairment
losses, foreign exchange gains and losses on monetary instruments and interest calculated using the effective
interest method are recognised in profit or loss. The cumulative gain or loss previously recognised in other
comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment when the
financial asset is derecognised. Interest income calculated using the effective interest method is recognised in
profit or loss. Dividends on an available-for-sale equity instrument are recognised in profit or loss when the
Group’s right to receive payment is established.
222
KPJ Healthcare Berhad annual report
2014
Notes to the
Financial Statements
For the financial year ended 31 December 2014 (continued)
