notes to tHe FinanCial stateMents

For tHe FinanCial Year ended 31 deCeMBer 2010

38. CHANGES IN ACCOUNTING POLICIES AND RECLASSIFICATIONS (CONTINUED)

during the financial year, the Group had also made certain reclassifications to comparatives to conform

with current year presentation. The change in presentation results in the financial statements providing

more relevant information about the effects of the transactions on the Group's financial performance and

position.

(b) Improvement to FrS 117 ­ Leases

Leasehold land is classified as a finance lease if the Group has substantially all the risks and rewards

incidental to ownership. Previously, leasehold land was classified as an operating lease unless title is

expected to pass to the lessee at the end of the lease term. Following the amendment to FrS 117,

the classification of leasehold land has been changed from operating to finance lease and from

prepaid lease. The effect of the change is adjusted for retrospectively as disclosed in note 38(e) to

the financial statements.

(c)

revenue

Income from rental of towers of the Group is now classified as part of operating revenue as the

Group considers the business of leased towers and leased lines as arising in the course of the

ordinary activities of the Group. Comparative information has been restated as disclosed in note

38(e) to the financial statements.

(d) deferred taxes

deferred taxes in respect of a subsidiary were previously recognised as deferred tax assets. This has

been reclassified to off-set against deferred tax liabilities as they relate to the same entity.

Comparative information is restated accordingly, as disclosed in note 38(e) to the financial

statements.

pg 276

annual report 2010

Axiata Group Berhad

(242188-H) ·