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FINANCIAL STATEMENTS
Axiata Group Berhad | Annual Report 2016
211
26. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
(a) Net book value of PPE of certain subsidiaries pledged as security for borrowings (Note 16(a) to the financial statements) are as follows:
Group
2016
RM’000
2015
RM’000
Telecommunication network
5,311,014
4,137,730
Movable plant and equipment
237,467
180,394
Computer support system
6,643
5,412
Land
22,572
18,576
Buildings
12,773
6,590
5,590,469
4,348,702
(b) XL owns land located throughout Indonesia with Building Use Rights (
Hak Guna Bangunan
or “HGB”) for periods of 20-30 years (2015: 20-29
years) which will expire between 2017 and 2046 (2015: 2016 and 2045).
As at 31 December 2016, there are 83 locations (2015: 100 locations) with a total book value by RM14.3 million (2015: RM18.2 million) and for
which HGB certificates are in the process.
(c) There had been a change in the expected pattern of consumptions of future economic benefits embodied in certain telecommunication
network equipment of subsidiaries within the Group due to assets replacement plans. The revision was accounted for as a change in accounting
estimate and has increased the depreciation charge during the financial year of the Group by RM581.5 million.
(d) The Group’s carrying amount of land including:
Group
2016
RM’000
2015
RM’000
Freehold
85,007
42,883
Leasehold
423,824
491,034
508,831
533,917
(e) Included in the net book value of telecommunication network equipment of the Group are leased assets amounting to RM1,465.7 million
(2015: RM860.2 million).