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Notes to the Financial Statements
31 December 2015
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(c) Property, plant and equipment (continued)
All other property, plant and equipment are depreciated on the straight-line method to write-off the cost of each category of assets to its
residual value over its estimated useful life, summarised as follows:
Buildings
42 – 50 years
Telecommunications equipment
2 – 25 years
Submarine cables (included within telecommunications equipment)
10 – 25 years
Site decommissioning works (included within telecommunications equipment)
15 years
Motor vehicles
5 years
Office furniture, fittings and equipment
3 – 7 years
Capital work-in-progress and capital inventories comprising mainly telecommunications equipment, information technology system and
renovations are not depreciated until they are ready for their intended use.
Residual values and useful lives are reassessed and adjusted, if appropriate, at each reporting date.
At each reporting date, the Group assesses whether there is any indication of impairment. Where an indication of impairment exists, the
carrying amount of the asset is assessed and written down immediately to its recoverable amount. See accounting policy Note 3(g)(i) on
impairment of non-financial assets.
Gains and losses on disposals are determined by comparing proceeds with carrying amounts and are included in the statement of profit or loss.
(d) Intangible assets
The Group acquires intangible assets either as part of a business combination or through separate acquisition. Intangible assets acquired
in a business combination are recorded at their fair value at the date of acquisition and recognised separately from goodwill. On initial
acquisition, management judgment is applied to determine the appropriate allocation of purchase consideration to the assets being acquired,
including goodwill and identifiable intangible assets.
(i)
Spectrum rights
The Group’s spectrum rights consist of telecommunications licences with allocated spectrum rights which were acquired as part of
a business combination and other spectrum rights. Spectrum rights that are considered to have an indefinite economic useful life
are not amortised but tested for impairment on an annual basis, and where an indication of impairment exists. Spectrum rights that
are considered to have a finite life are amortised on a straight-line basis over the period of expected benefit and assessed at each
reporting date whether there is any indication of impairment exists.
See accounting policy Note 3(g)(i) on impairment of non-financial assets.
The estimated useful lives of the spectrum rights of the Group are as follows:
Telecommunications licences with allocated spectrum rights
Indefinite life
Other spectrum rights
4 years
Management assesses the indefinite economic useful life assumption applied to the acquired intangible assets annually.
