Telkom AR front.qxp

174
Telkom Annual Report 2009
Notes to the consolidated annual financial statements (continued)
for the three years ended March 31, 2009
11. PROPERTY, PLANT AND EQUIPMENT (continued)
The carrying amounts of property, plant and equipment can be reconciled as follows:**
Carrying Transfers Impairment, Carrying
value at to Business Foreign write-offs value at
beginning disposal combi- currency and Depre- end of
of year groups Additions nations Transfers* translation reversals Disposals ciation year
Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm
2009
Freehold land and buildings 2,921 (293) 283 – 82 (4) (5) (2) (168) 2,814
Leasehold buildings 634 (360) 119 – 24 (64) – – (25) 328
Network equipment 34,358 (7,951) 2,913 – 3,378 30 (141) (71) (2,733) 29,783
Support equipment 1,720 (235) 137 – 112 1 (12) – (284) 1,439
Furniture and office equipment 191 (72) 19 – 13 1 – – (27) 125
Data processing equipment
and software 2,375 (370) 154 – 310 (1) (5) (1) (437) 2,025
Under construction 4,200 – 4,872 – (4,120) (238) (102) – – 4,612
Other 416 (304) 228 – 13 (1) (1) – (59) 292
46,815 (9,585) 8,725 – (188) (276) (266) (74) (3,733) 41,418
2008
Freehold land and buildings 2,757 – 300 22 27 2 (3) (8) (176) 2,921
Leasehold buildings 564 – 136 26 32 1 (67) (1) (57) 634
Network equipment 31,183 – 5,167 404 1,301 272 (136) (107) (3,726) 34,358
Support equipment 1,609 – 316 1 116 3 (8) – (317) 1,720
Furniture and office equipment 170 – 78 3 1 1 (8) (1) (53) 191
Data processing equipment
and software 2,129 – 525 31 150 6 (19) (2) (445) 2,375
Under construction 2,536 – 3,416 135 (1,737) 2 (152) – – 4,200
Other 306 – 170 8 11 7 (2) (3) (81) 416
41,254 – 10,108 630 (99) 294 (395) (122) (4,855) 46,815
2007
Freehold land and buildings 2,699 – 209 – – 2 17 (1) (169) 2,757
Leasehold buildings 618 – – – 1 – – (14) (41) 564
Network equipment 28,941 – 5,154 1 849 240 (199) (270) (3,533) 31,183
Support equipment 1,321 – 442 – 109 2 (15) – (250) 1,609
Furniture and office equipment 134 – 51 3 8 1 – – (27) 170
Data processing equipment
and software 2,082 – 466 12 (36) 8 (10) (2) (391) 2,129
Under construction 1,320 – 2,165 – (912) – (37) – – 2,536
Other 159 – 161 – 58 4 (1) (3) (72) 306
37,274 – 8,648 16 77 257 (245) (290) (4,483) 41,254
Full details of land and buildings are available for inspection at the registered offices of the Group.
The Group does not have temporarily idle property, plant and equipment.
A major portion of this capital expenditure relates to the expansion of existing networks and services. An extensive build programme that provides capacity
for growth in services, with focus on Next Generation Network technologies, roll-out of the W-CDMA network and Multi-Links’s expansion of network
equipment, has resulted in an increase in property, plant and equipment additions.
During the 2008 financial year, the Group recognised an impairment loss relating to Telkom Media assets. The recoverable amount for certain items of
property, plant and equipment was estimated, and an impairment loss of R217 million was recognised in order to reduce the carrying amount of those
assets to their recoverable amount. The impairment has been included in impairment, write-offs and reversals.
Included in the current year’s additions in the other category, is an amount of R179 million (2008: R31 million; 2007: RNil) that relates to finance leases.
An amount of R71 million (2008: R88 million; 2007: R240 million) under property, plant and equipment disposals relates to the reclassification of
Customer Premises Equipment at the start of the lease. These disposals are as a result of the Group entering into a leasing arrangement.
* An amount of R21 million was transferred from network equipment to cash and cash equivalents for Telkom Media.
** The 2009 reconciliation excludes assets held in the disposal groups held for sale, refer to note 9.