15. INVESTMENTS IN SUBSIDIARIES (CONTINUED)
(c) Acquisition of subsidiaries in 2013 (continued):
The net assets recognised in the 31 December 2013 financial statements were based on a provisional assessment of their
fair value while the Group sought an independent valuation for the land and buildings owned by Sri Manjung Specialist
Centre Sdn Bhd. The valuation had not been completed by the date the 2013 financial statements were approved for issue
by management.
In February 2015, the valuation was completed and the acquisition date fair value of the property, plant and equipment
was RM6,756,000, an increase of RM2,351,000 over the provisional value. The 2013 comparative information was restated
to reflect the adjustment to the provisional amounts. As a result, there was an increase in the deferred tax liabilities of
RM548,000. There was also a corresponding reduction in goodwill of RM1,803,000, resulting in RM9,023,000 of total
goodwill arising on the acquisition. The increased depreciation charge on the property, plant and equipment from the
acquisition date to 31 December 2013 was not material.
(d) Disposal of equity interest Healthcare IT Solutions Sdn Bhd in 2014 without losing control
On 4th September 2014, the Group disposed 17% interest in Healthcare IT Solutions Sdn Bhd (“HITS”) for a consideration
of RM233,454. This resulted in an increase in non-controlling interest of RM697,474 and a decrease in the equity
attributable to owner of the parent of RM697,474. The effects of changes in ownership interest in HITS are summarised
below:
Group
2014
2013
RM’000
RM’000
Carrying amount of equity interest disposed
697
–
Consideration received
233
–
Loss on disposal
464
–
Changes in equity attributable to owners of the parents arising from disposal of
interest in HITS without a loss of control
697
–
254
KPJ Healthcare Berhad annual report
2014
Notes to the
Financial Statements
For the financial year ended 31 December 2014 (continued)
