Maxis Berhad | Annual Report 2012

Maxis Berhad // Annual Report 2012 108 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2012 Continued 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: 31.12.2012 31.12.2011 1.1.2011 Foreign currencies RM RM RM 1 Euro 4.04 4.10 4.09 1 Pound Sterling (“GBP”) 4.94 4.93 4.76 1 Singapore Dollar (“SGD”) 2.50 2.45 2.40 1 Special Drawing Rights (“SDR”) (1) 4.70 4.86 4.72 1 United States Dollar (“USD”) 3.06 3.17 3.09 100 Indian Rupee 5.56 5.97 6.87 100 Indonesian Rupiah 0.03 0.04 0.03 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 that is directly attributable to the acquisition of property, plant and equipment. 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 telecommunication 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 income statement during the year in which they are incurred. Freehold land is not depreciated as it has an indefinite life. Leasehold lands 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