4. Pacientes y métodos
5.7. Coste global por proceso
2014 2013
Growth rate % 22 22
Discount rate % 13 13
Management determined budgeted profit from operating activities based on past performance and its expectations for the market developments. The weighted average growth rates used are consistent with the forecasts included in industry reports. The discount rates used are pre-tax and reflect specific risks relating to the Tanzania and Uganda segment.
Goodwill is classified as a non-current asset.
Notes to The Financial
Statements (Continued)
19 Property and equipment
(a) Group
Office Capital
furniture and Computer Motor work-in Telephone
equipment equipment Vehicles progress equipment Total Kshs’000 Kshs’000 Kshs’000 Kshs’000 Kshs’000 Kshs’000 Year ended 31 December 2014
Cost At 1 January 2014 364,390 333,306 102,223 13,698 70,413 884,030 Additions 66,595 66,569 13,935 58,939 6,725 212,763 Capitalised 9,566 1,564 - (11,130) - - Disposals (5,864) (63) (13,450) - - (19,377) Translation difference 1,038 (1,322) 1,868 (1,295) 58 347 At 31 December 2014 435,725 400,054 104,576 60,212 77,196 1,077,763 Depreciation At 1 January 2014 210,090 248,593 40,758 - 26,134 525,575
Charge for the year 41,181 48,169 26,080 - 17,513 132,943 Accumulated depreciation
on disposals (3,164) (55) (13,149) - - (16,368) Translation difference (12) (1,280) 389 - 155 (748)
At 31 December 2014 248,095 295,427 54,078 - 43,802 641,402 Net book amount
At 31 December 2014 187,630 104,627 50,498 60,212 33,394 436,361 Year ended 31 December 2013
Cost At 1 January 2013 260,055 243,323 46,531 - 68,326 618,235 Additions 102,231 87,510 66,401 13,698 1,799 271,639 Disposals - (117) (10,989) - - (11,106) Translation difference 2,104 2,590 280 - 288 5,262 At 31 December 2013 364,390 333,306 102,223 13,698 70,413 884,030 Depreciation At 1 January 2013 179,647 215,097 32,771 - 14,657 442,172
Charge for the year 28,374 30,823 18,446 - 11,474 89,117 Accumulated depreciation
on disposals - (20) (10,772) - - (10,792) Translation difference 2,069 2,693 313 - 3 5,078
At 31 December 2013 210,090 248,593 40,758 - 26,134 525,575 Net book amount 154,300 84,713 61,465 13,698 44,279 358,455
Notes to The Financial
Statements (Continued)
19 Property and equipment
(b) Company
Office
furniture and Computer Motor Telephone
equipment equipment Vehicles equipment Total Kshs’000 Kshs’000 Kshs’000 Kshs’000 Kshs’000 Year ended 31 December 2014
Cost At 1 January 2014 7,122 38,726 13,810 33,148 92,806 Additions 7,832 34,708 - 73 42,613 At 31 December 2014 14,954 73,434 13,810 33,221 135,419 Depreciation At 1 January 2014 781 4,505 674 7,162 13,122
Charge for the year 1,695 20,867 3,454 4,858 30,874
At 31 December 2014 2,476 25,372 4,128 12,020 43,996 Net book amount
At 31 December 2014 12,478 48,062 9,682 21,201 91,423 Year ended 31 December 2013
Cost At 1 January 2013 1,035 2,173 - 32,145 35,353 Additions 6,087 36,553 13,810 1,003 57,453 At 31 December 2013 7,122 38,726 13,810 33,148 92,806 At 31 December 2013 Depreciation At 1 January 2013 265 323 - 2,376 2,964
Charge for the year 516 4,182 674 4,786 10,158
At 31 December 2013 781 4,505 674 7,162 13,122
Net book amount 6,341 34,221 13,136 25,986 79,684
Property and equipment are classified as non-current assets.
Notes to The Financial
Statements (Continued)
20 Intangible assets
(a) Group
Computer Work in
software progress Total Kshs ’000 Kshs ’000 Kshs ’000 Year ended 31 December 2014:
Cost At 1 January 2014 450,939 19,031 469,970 Additions 49,066 - 49,066 Transfers 19,031 (19,031) - Translation difference 1,453 - 1,453 At 31 December 2014 520,489 - 520,489 Depreciation At 1 January 2014 290,378 - 290,378
Charge for the year 117,124 117,124
At 31 December 2014 407,502 - 407,502
Net book amount
At 31 December 2014 112,987 - 112,987 Year ended 31 December 2013:
Cost
At 1 January 2013 398,188 - 398,188
Additions 54,785 19,031 73,816
Transfers (2,078) - (2,078)
Transfer from work in progress 44 - 44
At 31 December 2013 450,939 19,031 469,970
Depreciation
At 1 January 2013 181,530 - 181,530
Charge for the year 108,848 - 108,848
At 31 December 2013 290,378 - 290,378
Net book amount 160,561 19,031 179,592
Notes to The Financial
Statements (Continued)
20 Intangible assets (continued)
(b) Company
2014 2013 Kshs ’000 Kshs ’000 Carrying value At start of year 131,087 215,130 Additions 26,531 3,161Work in progress - Additions - 19,031
Amortisation charge for the year (95,682) (106,235)
At end of year 61,936 131,087
The intangible assets for the company relate to computer software. All intangible assets are classified as non-current assets.
21 Investment properties
(a) Group
2014 2013 Kshs ’000 Kshs ’000 At start of year 11,412,346 8,119,908 Additions 1,350,067 1,949,069Fair value gains 2,493,175 1,140,556
Translation difference (133,281) 202,813 At end of year 15,122,307 11,412,346
(b) Company
2014 2013 Kshs ’000 Kshs ’000 At start of year 2,275,274 1,520,000 Additions 738,872 718,900Fair value gains 621,096 36,374
At end of year 3,635,242 2,275,274
The Group’s investment properties were revalued in December 2014 and 2013 by Knight Frank Valuers, professional independent valuers in Kenya, South Sudan and Bageine & Company in Uganda respectively on the basis of open market. The open market value of all properties was determined using recent market prices. The rental income earned by the Group from its investment properties leased out under operating leases amounted to Kshs 484 million (2013: Kshs 295 million). Direct operating expenses arising on investment properties amounted to Kshs 62 million (2013: Kshs 24 million). All investment properties are classified as non-current assets.
Notes to The Financial
Statements (Continued)
21 Investment properties (continued)
Details of the Group’s investment properties and information about fair value hierarchy as at 31 December 2014 are as follows:
2014 2013 Kshs ‘000 Kshs ‘000
Level 1 - -
Level 2 - -
Level 3 15,122,307 11,412,346
Fair value as at 31 December 15,122,307 11,412,346
22 Deferred income tax
Deferred tax is calculated, in full, on all temporary differences under the liability method using a principal tax rate of 30% (2013: 30%). The movement on the deferred income tax account is as follows:
31-Dec 31-Dec 2014 2013 Kshs ’000 Kshs ’000
At start of year: 246,813 195,900
Profit or loss (Note 11) 377,349 57,893
Translation difference 12,984 (6,980) Total 637,146 246,813 Disclosed as follows; 31-Dec 31-Dec 2014 2013 Kshs ’000 Kshs ’000
Deferred tax asset (83,640) (133,202)
Deferred tax liability 720,786 380,015
Total 637,146 246,813
Notes to The Financial
Statements (Continued)
22 Deferred income tax (continued)
Deferred tax assets and liabilities and deferred tax charge/(credit) in the income statement are attributable to the following items:
Year ended 31 December 2014 1-Jan (Charged) Translation 31-Dec 2014 / credited Reserves 2014 Kshs ’000 Kshs ’000 Kshs ’000 Kshs ’000
Property and equipment: - on historical cost basis 16,151 (100,534) 3 (84,380) Investment property fair value gains (466,485) (411,491) (9,926) (887,902)
Other provisions 203,521 134,676 (3,061) 335,136
Net deferred tax liability (246,813) (377,349) (12,984) (637,146) Year ended 31 December 2013 1-Jan (Charged) Translation 31-Dec 2013 / credited Reserves 2013 Kshs ’000 Kshs ’000 Kshs ’000 Kshs ’000
Property and equipment: - on historical cost basis 16,020 (1,949) 2,080 16,151 Investment property fair value gains (253,913) (231,032) 18,460 (466,485)
Other provisions 41,993 175,088 (13,560) 203,521
Net deferred tax liability (195,900) (57,893) 6,980 (246,813)
Deferred income tax liabilities are classified as non-current liabilities.
Notes to The Financial
Statements (Continued)
23 Retirement benefit obligation
Description of plan
The Group operates a funded defined benefit plan for all employees. The Scheme is open to new entrants. Scheme members’ contributions are a fixed percentage of pensionable pay with the Group responsible for the balance of the cost of benefits accruing. The Scheme is established under trust. The Scheme funds are invested by a fund manager in a variety of asset classes comprising government securities (Treasury bills and bonds), stocks and shares and commercial paper.
The amounts recognized in the statement of financial position are determined as follows:
2014 2013 Kshs’000 Kshs’000
Present value of funded obligations 651,907 609,232
Fair value of plan assets 937,825 794,159
Present value of over-funding (285,918) (184,927)
The movement in the fair value of funded obligations is as follows:
2014 2013 Kshs’000 Kshs’000
At start of year 609,232 455,896
Current service cost 84,110 47,607
Interest cost 85,082 66,084
Remeasurements (67,475) 104,731
Benefits paid (59,042) (65,086)
At end of year 651,907 609,232
The movement in the fair value of the plan assets is as follows:
2014 2013 Kshs’000 Kshs’000
At start of year 794,159 646,596
Interest on scheme assets 105,317 94,986
Remeasurements (16,666) 26,030
Employer contribution 73,694 58,425
Employee contribution 40,363 33,208
Benefits paid (59,042) (65,086)
At end of year 937,825 794,159
Notes to The Financial
Statements (Continued)
23 Retirement benefit obligation (continued)
Plan assets compromise:
2014 2013 Kshs’000 %age Kshs’000 %age Equity instruments 277,197 29.56% 217,408 27.36% Debt instruments 525,530 56.04% 446,631 56.23% Other 135,098 14.40% 130,120 16.41% At end of year 937,825 100% 794,159 100%
The amounts recognised in the income statement for the year are as follows:
2014 2013 Kshs’000 Kshs’000
Current service cost 84,110 47,607
Net Interest cost 86,891 (24,410)
Return on scheme assets (excluding interest) (107,126) (4,492)
Net charge for the year included in staff costs (note 10) 63,875 18,705
The principal actuarial assumptions used were as follows:
2014 2013
- discount rate 12.9% 12.8%
- expected rate of return on scheme assets 12.9% 12.8% - future salary increases 7.0% 11.8% - future pension increases 2.4% 4.9%
Sensitivity analysis of the above actuarial assumptions
The sensitivity of the defined benefit obligation to the financial assumptions has been assessed by increasing and decreasing the discount rate assumption by 0.5%.
Defined benefit obligation
Discount rate 12.4% 12.9% 13.4%
Total accrued liability 656,758 651,907 648,906
Change 0.7% (0.5%)
Notes to The Financial
Statements (Continued)
24 Equity investments
The Group’s equity investments are measured at fair value with fair value changes recorded through either other comprehensive income or income statements for different portfolios of equity investments, following early adoption of IFRS 9, as follows: