Maxis Berhad
Annual Report 2014
130
Notes to the
Financial Statements
31 December 2014
15 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Group
2014
RM’000
2013
RM’000
Net book value
Long-term leasehold land
2,916
2,952
Short-term leasehold land
3,065
3,147
Freehold land
18,260
18,260
Buildings
65,791
67,788
Telecommunications equipment
3,034,770
3,268,695
Motor vehicles
4,651
5,259
Office furniture, fittings and equipment
426,538
340,172
Capital work-in-progress
433,804
315,677
Capital inventories
19,016
16,481
4,008,811
4,038,431
Capital work-in-progress is reclassified to the respective categories of property, plant and equipment on completion.
In previous year, the Group recognised allowance for impairment of property, plant and equipment amounting to RM81,971,000
(included within network operation costs in the statement of profit or loss). This comprises RM11,840,000 of capital inventories
which were written down to their recoverable amount of RM16,841,000, based on their planned usage. The remaining balance of
RM70,131,000 relates to dedicated telecommunications equipment which was fully impaired arising from a review of the projected
cash flows. During the financial year, reversals of impairment of property, plant and equipment for capital inventories amounting
to RM1,165,000 (included within network operation costs in the statement of profit or loss) was made, upon identification of their
planned usage.
During the financial year, the Group had written off property, plant and equipment, net of adjustment, of RM14,770,000 (2013:
RM37,712,000) arising from decommissioning of assets and discontinuing of projects.
For the current financial year, the Group revised the useful lives of certain telecommunications equipment ranging from 2 years to
20 years to a remaining useful lives ranging from one month to eight 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 RM260,585,000.
For the financial year ended 31 December 2013, 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 financial year ended 31 December 2013 had increased by RM59,485,000.
