IHH Healthcare Berhad
l
Annual Report 2014
145
Notes to the Financial Statements
4.
Prepaid lease payments
Group
2014
RM’000
2013
RM’000
Cost
At 1 January
714,965
-
Additions
-
706,441
Translation difference
59,493
8,524
At 31 December
774,458
714,965
Accumulated amortisation
At 1 January
11,916
-
Amortisation charge for the year
14,424
11,611
Translation difference
2,057
305
At 31 December
28,397
11,916
Net carrying amount
At 1 January
703,049
-
At 31 December
746,061
703,049
Prepaid lease payments relate to a leasehold land of an overseas subsidiary which was acquired in 2013 and is, in substance, an operating
lease. Such leasehold land is reclassified in current year from property, plant and equipment to prepaid lease payments to better reflect the
nature of the transaction. The comparative balances are also restated to conform with the current year’s presentation and classification.
The prepaid lease payments are amortised on a straight-line basis over the lease term of 50 years. The amortisation charge for the year ended
31 December 2014 of RM14,424,000 (2013: RM11,611,000) is capitalised in property, plant and equipment.
5.
Investment properties
Group
Note
2014
RM’000
2013
RM’000
At 1 January
1,922,721
1,775,054
Additions
212,887
219,520
Transfer from property, plant and equipment
3
67,584
1,350
Transfer to property, plant and equipment
3
(8,924)
-
Disposals
(190,509)
-
Cost adjustments*
-
(597)
Change in fair value recognised in profit or loss
29
52,453
42,840
Translation differences
(27,774)
(115,446)
At 31 December
2,028,438
1,922,721
* : Relates to adjustments made upon the finalisation of construction costs for investment properties during the year.
Investment properties includes retail units and medical suites within hospitals, nursing homes with care services and a pharmaceutical product
distributing and manufacturing facility leased or intended to be leased to external parties.
