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Notes to the Financial Statements
31 December 2015
4 CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS (CONTINUED)
Critical accounting estimates and assumptions (continued)
(b) Estimated useful lives and impairment assessment of property, plant and equipment
The Group reviews annually the estimated useful lives and assesses for indicators of impairment of property, plant and equipment based
on factors such as business plans and strategies, historical sector and industry trends, general market and economic conditions, expected
level of usage, future technological developments and other available information. It is possible that future results of operations could be
materially affected by changes in these estimates brought about by changes in the factors mentioned. Any impairment or reduction in the
estimated useful lives of property, plant and equipment would increase charges to the statement of profit or loss and decrease their carrying
value. Impairment assessment was carried out for dedicated telecommunications equipment during the financial year. See Note 15 to the
financial statements for the impact of the changes in the estimated useful lives and impairment of property, plant and equipment.
(c) Provisions for liabilities and charges
The Group recognises provisions for liabilities and charges when it has a present legal or constructive obligation arising as a result of a past
event, and it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made.
The recording of provision requires the application of judgments about the ultimate resolution of these obligations. As a result, provisions
are reviewed at each reporting date and adjusted to reflect the Group’s current best estimate. See Note 28 to the financial statements for
the impact on change in estimate in relation to the provision for site rectification and decommissioning works.
5 SEGMENT REPORTING
Segment reporting is not presented as the Group is primarily engaged in providing integrated telecommunication services in Malaysia, whereby
the measurement of profit or loss including EBITDA
(1)
that is used by the chief operating decision-makers is on a Group basis.
The Group’s operations are mainly in Malaysia. In determining the geographical segments of the Group, revenues are based on the country in
which the customer or international operator is located. Non-current assets by geographical segments are not disclosed as all operations of the
Group are based in Malaysia.
Group
2015
RM’000
2014
RM’000
Malaysia
8,417,789
8,122,353
Other countries
(2)
182,784
266,149
Total revenue
8,600,573
8,388,502
EBITDA
4,331,429
4,229,063
Notes:
(1)
Defined as profit before finance income, finance costs, tax, depreciation, amortisation and allowance for write down of identified network costs.
(2)
Represents revenue from roaming partners and hubbing revenue.
