Maxis Berhad | Annual Report 2012

Maxis Berhad // Annual Report 2012 135 FINANCIAL STATEMENTS CORPORATE GOVERNANCE ANALYSIS OF SHAREHOLDINGS OTHER INFORMATION ANNUAL GENERAL MEETING 15 PROPERTY, PLANT AND EQUIPMENT (CONTINUED) Group 31.12.2012 31.12.2011 1.1.2011 RM’000 RM’000 RM’000 Net book value Long-term leasehold land 2,988 3,024 3,063 Short-term leasehold land 3,229 3,311 3,390 Freehold land 18,260 18,260 18,260 Buildings 69,786 71,784 73,782 Telecommunications equipment 3,614,014 4,328,056 4,219,614 Motor vehicles 7,393 9,942 1,516 Office furniture, fittings and equipment 257,489 146,022 136,344 Capital work-in-progress 485,727 390,675 551,077 4,458,886 4,971,074 5,007,046 Capital work-in-progress is reclassified to the respective categories of property, plant and equipment on completion. For the current financial year, the Group revised the useful lives of certain telecommunications equipment ranging from 7 years to 20 years to a remaining useful lives ranging from 1 month to 10 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 current financial year has increased by RM162,461,000. For the financial year ended 31 December 2011, the Group revised the useful lives of certain telecommunications equipment and office equipment ranging from 4 years to 20 years to a remaining useful lives ranging from 16 months to 20 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 2011 had increased by RM16,782,000. Additions in property, plant and equipment during the financial year include purchases by means of finance leases and deferred payment schemes amounting to RM Nil (2011: RM21,384,000) and RM78,008,000 (2011: RM16,370,000) respectively. The net book value of property, plant and equipment held under finance leases at the reporting date are as follows: Group 31.12.2012 31.12.2011 1.1.2011 RM’000 RM’000 RM’000 Office equipment (1) – 53,615 61,042 Motor vehicles 6,567 8,662 22 6,567 62,277 61,064 Note: (1) The finance lease arrangement for office equipment with net book value of RM47,248,000 was terminated during the financial year and the titles to these office equipment were transferred to the Group upon payment of the termination and/or exit charges.