Maxis Berhad
Annual Report 2014
100
Notes to the
Financial Statements
31 December 2014
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(c) Property, plant and equipment (continued)
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
All 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, submarine cables 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.
