Notes to the Financial Statements

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009

4.

SiGNificANT AccoUNTiNG poLiciES (coNTiNUEd)

(c)

property, plant and equipment (continued)

(ii)

Depreciation and residual value

Freehold land is not depreciated as it has an infinite life. Other property, plant and equipment are depreciated

on a straight line basis to write off the cost of the assets to their residual values over their estimated useful

lives in years as summarised below:

Buildings

5 ­ 50 years

Telecommunication network equipment

3 ­ 20 years

Movable plant and equipment

5 ­ 8 years

Computer support systems

3 ­ 5 years

Depreciation on assets under construction or capital work-in-progress commence when the assets are ready

for their intended use. Depreciation on property, plant and equipment ceases at the earlier of derecognition

and classification as held for sale.

The assets' residual values and useful lives are reviewed and adjusted as appropriate at each balance sheet

date.

(iii)

Impairment

At each balance sheet date, the Group assesses whether there is any indication of impairment. If such

indication exists, an analysis is performed to assess whether the carrying value of the asset is fully recoverable.

A write down is made if the carrying value exceeds the recoverable amount (see significant accounting

policies Note 4(f) on impairment of non-financial assets).

(iv) Gains or losses on disposal

Gains or losses on disposal are determined by comparing the proceeds with the carrying amount of the

related asset and are included in the Income Statement.

(v)

Asset exchange transaction

Property, plant and equipment may be acquired in exchange for a non-monetary asset or for a combination

of monetary and non-monetary assets and is measured at fair value unless:

·

the exchange transaction lacks commercial substance; or

·

the fair value of neither the assets received nor the assets given up can be measured reliably.

The acquired item is measured in this way even if the Group cannot immediately derecognise the assets given

up. If the acquired item cannot be reliably measured at fair value, its cost is measured at the carrying amount

of the asset given up.

Axiata Group Berhad · 182