Overview Our Business
Strategic Review Corporate Governance
Financial Statements
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117
Notes to the Financial Statements
31 December 2015
15 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Group
2015
RM’000
2014
RM’000
Net book value
Long-term leasehold land
2,880
2,916
Short-term leasehold land
2,983
3,065
Freehold land
18,260
18,260
Buildings
63,793
65,791
Telecommunications equipment
3,197,279
3,034,770
Motor vehicles
7,197
4,651
Office furniture, fittings and equipment
416,162
426,538
Capital work-in-progress
507,886
433,804
Capital inventories
10,812
19,016
4,227,252
4,008,811
Capital work-in-progress is reclassified to the respective categories of property, plant and equipment on completion.
During the financial year, reversals of impairment of property, plant and equipment for capital inventories amounting to RM532,000 (2014:
RM1,165,000) (included within network operation costs in the statement of profit or loss) were made, upon identification of their planned usage.
During the financial year, the Group had written off property, plant and equipment, net of adjustment, of RM29,755,000 (2014: RM14,770,000)
arising from decommissioning of assets and discontinuing of projects.
For the current financial year, the Group revised the useful lives of certain telecommunications equipment and office equipment ranging from 2
years to 10 years to a remaining useful lives ranging from 1 month to 5 years as part of the network and information technology modernisation
programmes to support the business. The revision was accounted as a change in accounting estimate and as a result, the depreciation charge for
the current financial year has increased by RM81,333,000.
For the financial year ended 31 December 2014, the Group revised the useful lives of certain telecommunications equipment ranging from 2 years
to 20 years to a remaining useful lives ranging from 1 month to 8 years as part of the network modernisation programme to support the business.
The revision was accounted as a change in accounting estimate and as a result, the depreciation charge for the financial year ended 31 December
2014 had increased by RM260,585,000.
