ENRICHING LIVES EXPANDING HORIZONS - Maxis

MAXIS BERHAD
ANNUAL REPORT 2011
151
15 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
GROUP
2011 2010
RM’000
RM’000
Net book value
Long-term leasehold land 3,024 3,063
Short-term leasehold land 3,311 3,390
Freehold land 18,260 18,260
Buildings 71,784 73,782
Telecommunications equipment 4,328,056 4,219,614
Motor vehicles 9,942 1,516
Office furniture, fittings and equipment 146,022 136,344
Capital work-in-progress 390,675 551,077
4,971,074 5,007,046
Capital work-in-progress is reclassified to the respective categories of property, plant and equipment on completion.
The Group revised the useful lives of certain telecommunications equipment and office equipment ranging from 4 years to
20 years to a remaining useful lives ranging from 16 months to 20 years as part of the network modernisation programme to
support the business. During the financial year, 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 RM16,782,000.
Additions in property, plant and equipment during the financial year include purchases by means of finance leases and deferred
payment schemes amounting to RM21,384,000 (2010: RM14,469,000) and RM16,370,000 (2010: RM42,270,000) respectively.
The net book value of property, plant and equipment held under finance leases at the reporting date are as follows:
GROUP
2011 2010
RM’000
RM’000
Office equipment 53,615 61,042
Motor vehicles 8,662 22
62,277 61,064