3. SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES (CONTINUED)
3.2 Key sources of estimation uncertainty (continued)
(c) Deferred tax assets
Deferred tax assets are recognised for all unused tax losses and unabsorbed capital allowances to the extent that
it is probable that taxable profit will be available against which the losses and capital allowances can be utilised.
Significant management judgement is required to determine the amount of deferred tax assets that can be
recognised, based upon the likely timing and level of future taxable profits together with future tax planning
strategies. Details of deferred tax of the Group are disclosed in
Note 20
.
(d) Capitalisation and amortisation of software development expenditure
The Group capitalised costs relating to the software development and enhancement of its new and existing facilities
respectively, upon meeting all the criteria for capitalisation as described in
Note 2.9(b)
. Amortisation, which
commences upon commercialisation, is recognised in profit or loss based on a straight-line basis over the products’
estimated economic lives of five years. The Group reviews the amortisation period and amortisation method at least
once a year.
However, if there are indications that the products are unable to meet expected future cash flow, immediate
impairment loss will be recognised. Details of software development expenditure are disclosed in
Note 18
.
4. REVENUE AND COST OF SALES
Group
Company
2014
2013
2014
2013
RM’000
RM’000
RM’000
RM’000
Hospital charges
963,996
874,018
–
–
Consultation fees
760,360
636,074
–
–
Sale of pharmaceutical, medical and surgical products
798,371
716,700
–
–
Other hospital revenue
23,417
22,631
–
–
Wellness subscription fees
13,340
13,440
–
–
Enrollment fees
29,994
27,076
–
–
Registration fees
1,723
1,396
–
–
Deferred management fees
1,603
1,802
–
–
Dividend income from subsidiaries
–
–
107,118
105,322
Interest income charged to subsidiaries
–
–
2,032
4,040
Management fees charged to subsidiaries
–
–
39,029
34,976
Other revenue
46,332
38,511
752
508
2,639,136
2,331,648
148,931
144,846
Cost of sales of the Group consists mainly of appropriation to consultant, cost of medical supplies, direct staff cost, repair and
maintenance on medical equipment and depreciation charged on medical equipment.
232
KPJ Healthcare Berhad annual report
2014
Notes to the
Financial Statements
For the financial year ended 31 December 2014 (continued)
