Financial Statements Notes to the Financial Statements 1. BASIS OF PREPARATION (continued) (c) Functional and presentation currencies These financial statements are presented in RM, which is the Company’s functional currency. All financial information is presented in RM and has been rounded to the nearest million, unless otherwise stated. (d) Use of estimates and judgements The preparation of the financial statements in conformity with MFRS Accounting Standards requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. There are no significant areas of estimation uncertainty and critical judgements in applying accounting policies that have significant effect on the amounts recognised in the financial statements other than those disclosed in the following notes: • Note 5 – measurement of the fair value of investment properties • Note 6 – measurement of the recoverable amounts of cash-generating units • Note 20 – measurement of liabilities on put options granted to non-controlling interests • Note 36 – measurement of fair value of assets acquired and liabilities assumed in a business combination • Note 41 – assessment on whether the risk of loss is remote, possible or probable required significant judgement given the complexities involved As at 31 December 2024, the Group’s net current liabilities is RM2,705 million. In the preparation of the financial statements on a going concern basis, the Group has considered the future operating results and the availability of unutilised banking facilities to fulfil its obligations as and when they fall due. The Group is in the process of finalising the refinancing RM1,863 million of loans. 2. MATERIAL ACCOUNTING POLICIES The accounting policies set out in notes 2(a) to (m) have been applied consistently to all periods presented in these financial statements. (a) Basis of consolidation (i) Subsidiaries Investments in subsidiaries are measured in the Company’s statement of financial position at cost less accumulated impairment losses. (ii) Business combinations Business combinations are accounted for using the acquisition method from the acquisition date, which is the date on which control is transferred to the Group. For new acquisitions, the Group measures the cost of goodwill at the acquisition date as: • the fair value of the consideration transferred; plus • the recognised amount of any non-controlling interests in the acquiree; plus • if the business combination is achieved in stages, the fair value of the existing equity interest in the acquiree; less • the net recognised amount (generally fair value) of the identifiable assets acquired and liabilities assumed When the excess is negative, a gain on bargain purchase is recognised immediately in profit or loss. IHH Healthcare Berhad | Annual Report 2024 138
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