5 FAIR VALUE OF FINANCIAL INSTRUMENTS
(a) Determination of fair value
Financial instruments that are not carried at fair value and whose carrying amounts are reasonable approximation of
fair value
The following are classes of financial instruments that are not carried at fair value and whose carrying amounts are
reasonable approximation of fair value:
Current asset/liability
Note
Trade and other receivables and amounts due from subsidiaries
25
Deposits, cash and bank balances
26
Trade and other payables and amounts due to subsidiaries
28
Borrowings
29
Deposits
32
The carrying amounts of these financial assets and liabilities are reasonable approximation of fair values, either due to
their short-term nature or that they are floating rate instruments that are re-priced to market interest rates on or near
the reporting date.
The fair values of long term receivables and payables, which primarily comprise advances to or from subsidiaries, are
estimated by discounting expected future cash flows at market incremental lending rate for similar types of lending,
borrowing or leasing arrangement at the reporting date.
(b) Fair value measurement
Qualitative disclosures fair value measurement hierarchy for assets and liabilities are as follows:
Level 2
RM’000
Level 3
RM’000
Total
RM’000
Assets measured at fair value
Group
2015
Property, plant and equipment (Note 16):
– Freehold land
–
174,694
174,694
– Long leasehold land
–
124,226
124,226
– Buildings
–
499,563
499,563
Investment properties (Note 17)
–
279,833
279,833
–
1,078,316
1,078,316
265
KPJ Healthcare Berhad
Annual Report
2015
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015 (CONTINUED)
