13. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Revaluation of land and building
Certain leasehold land and buildings have been revalued on 31 December 2014 based on open market valuations carried out
by an independent firm of professional valuers to reflect fair value. The book values of the leasehold land and buildings were
adjusted to reflect the revaluation and the resultant surpluses were credited to revaluation reserve.
If the total amounts of the leasehold land and buildings had been determined in accordance with the historical cost convention,
they would have been included at:
Group
2014
2013
RM’0
RM’000
RM’000
Costs
Freehold land
5,899
5,899
Leasehold land
33,080
–
Buildings
37,214
6,929
76,193
12,828
Accumulated depreciation
Leasehold land
(216)
–
Buildings
(6,030)
(1,615)
Net carrying amounts
69,947
11,213
The additions and net book value of assets under hire purchase and finance leases are as follows:
Group
2014
2013
RM’0
RM’000
RM’000
Assets under hire purchase and finance leases:
– Addition during the financial year
(Note 32)
10,108
7,569
– Net book value at the end of financial year
78,201
77,708
The net book value of property, plant and equipment pledged for borrowing facility as at 31 December 2014 is RM425,992,000
(2013: RM348,343,000), as disclosed in
Note 26
.
Capitalisation of borrowing costs
The capital work-in-progress include borrowing costs arising from bank loans borrowed specifically for the purpose of
construction of a property. During the financial year, the borrowing costs capitalised as cost of capital work-in-progress
amounted to RM1,757,000 (2013: RM2,725,000).
Included in property, plant and equipment during the year are:
Group
2014
2013
RM’0
RM’000
RM’000
Finance cost
(Note 5)
1,757
2,725
243
Notes to the
Financial Statements
For the financial year ended 31 December 2014 (continued)
KPJ Healthcare Berhad annual report
2014
