2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.29 Contingent liabilities
The Group does not recognise contingent liabilities but discloses their existence in the notes to the financial
statements. A contingent liability is a possible obligation that arises from past events whose crystallisation will be
confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the
Group or a present obligation that is not recognised because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises in the extremely rare circumstances where there is
a liability that is not recognised because it cannot be measured reliably. However contingent liabilities do not include
financial guarantee contracts.
2.30 Share capital and share issuance expenses
An equity instrument is any contract that evidences a residual interest in the assets of the Group and of the Company
after deducting all of its liabilities. Ordinary shares are equity instruments.
Ordinary shares are recorded at the fair value of proceeds received, net of directly attributable incremental transaction
costs. Ordinary shares are classified as equity. Dividends on ordinary shares are recognised in equity in the period in
which they are declared.
2.31 Treasury shares
When shares of the Company, that have not been cancelled, recognised as equity are reacquired, the amount of
consideration paid is recognised directly in equity. Reacquired shares are classified as treasury shares and presented
as a deduction from total equity. No gain or loss is recognised in profit or loss on the purchase, sale, issue or
cancellation of treasury shares. When treasury shares are reissued by resale, the difference between the sales
consideration and the carrying amount is recognised in equity.
2.32 Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the
revenue can be reliably measured. Revenue is measured at the fair value of consideration received or receivable.
(a) Sale of goods and rendering of services
Revenue from hospital operations comprises inpatient and outpatient hospital charges, consultation fees, and
sales of pharmaceutical products, medical supplies and surgical products. These are recognised when services
are rendered and goods are delivered, net of discounts, rebates and returns.
(b) Wellness subscription fees
Wellness subscription fees are recognised in the period the services are provided.
(c) Tuition fees
Revenue from tuition fees are recognised over the period of instruction whereas non-refundable registration and
enrolment fees are recognised on a receipt basis.
257
KPJ Healthcare Berhad
Annual Report
2015
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015 (CONTINUED)
