Maxis Berhad | Annual Report 2013

119 OVERVIEW OUR BUSINESS STRATEGIC REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS Maxis Berhad Annual Report 2013 OTHER INFORMATION 15 PROPERTY, PLANT AND EQUIPMENT (CONTINUED) GROUP 2013 2012 RM’000 RM’000 Net book value Long-term leasehold land 2,952 2,988 Short-term leasehold land 3,147 3,229 Freehold land 18,260 18,260 Buildings 67,788 69,786 Telecommunications equipment 3,268,695 3,614,014 Motor vehicles 5,259 7,393 Office furniture, fittings and equipment 340,172 257,489 Capital work-in-progress 315,677 485,727 Capital inventories 16,481 – 4,038,431 4,458,886 Capital work-in-progress is reclassified to the respective categories of property, plant and equipment on completion. During the financial year ended 31 December 2013, the Group has reclassified telecommunications equipment from inventories to property, plant and equipment as disclosed in Note 23 to the financial statements. The allowance for impairment of property, plant and equipment recognised during the financial year amounting to RM81,971,000 (2012: RM Nil) had been included within network operation costs in the statement of profit or loss. This comprises RM70,131,000 of Home services’ dedicated telecommunications equipment which was fully impaired arising from a review of the segmental projected cash flows. The remaining balance of RM11,840,000 relates to Mobile services’ capital inventories which were written down to their recoverable amount of RM16,481,000, based on their planned usage. During the financial year, the Group had written off property, plant and equipment of RM37,712,000 (2012: RM132,835,000) arising from decommissioning network cell sites and discontinued projects. For the current financial year, the Group revised the useful lives of certain telecommunications equipment ranging from 4 years to 10 years to a remaining useful lives ranging from one month to six 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 RM59,485,000. For the financial year ended 31 December 2012, 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 financial year ended 31 December 2012 had increased by RM162,461,000. Additions in property, plant and equipment during the financial year include purchases by means of deferred payment schemes amounting to RM245,776,000 (2012: RM78,008,000). The net book value of property, plant and equipment held under finance leases at the reporting date are as follows: GROUP 2013 2012 RM’000 RM’000 Motor vehicles 4,475 6,567