Maxis Berhad
Annual Report 2015
page
90
Notes to the Financial Statements
31 December 2015
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(b) Foreign currencies (continued)
(iv) Closing rates
The principal closing rates used in translation of foreign currency amounts were as follows:
Foreign currencies
2015
RM
2014
RM
1 Singapore Dollar (“SGD”)
3.04
2.65
1 Special Drawing Rights (“SDR”)
(1)
5.98
5.08
1 United States Dollar (“USD”)
4.30
3.50
Note:
(1)
Represents the closing international accounting settlement rate with international carriers.
(c) Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. Cost includes expenditure (including
borrowing and staff costs) that is directly attributable to the acquisition of property, plant and equipment and any cost that is directly
attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by
management. The cost of certain property, plant and equipment items include the costs of dismantling and removing the item and restoring
the sites on which these items are located. These costs are due to obligations incurred either when the items were installed or as a
consequence of having used these items during a particular period.
Certain telecommunications assets are stated at the amount of cash or cash equivalent that would have to be paid if the same or an
equivalent asset was acquired. Included in telecommunications equipment are purchased computer software costs which are integral to
such equipment.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable
that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying
amount of the replaced part is derecognised. All other repairs and maintenance are charged to the statement of profit or loss during the
financial year in which they are incurred.
Freehold land is not depreciated as it has an indefinite life.
Leasehold land and buildings held for own use are classified as operating or finance leases in the same way as leases of other assets.
Long-term leasehold land is land with a remaining lease period exceeding 50 years. Leasehold land is amortised over the lease term on a
straight-line method, summarised as follows:
Long-term leasehold land
77 – 90 years
Short-term leasehold land
50 years
