ENRICHING LIVES EXPANDING HORIZONS - Maxis

MAXIS BERHAD
ANNUAL REPORT 2011
171
30 PROVISIONS FOR LIABILITIES AND CHARGES (CONTINUED)
Site rectification and decommissioning works
In the current financial year, a provision of RM103,788,000 (2010: RM137,063,000) has been recognised for dismantlement,
removal and site restoration costs. The provision is estimated using the assumption that decommissioning will only take
place upon the expiry of the lease terms (inclusive of secondary terms) of 15 to 30 years (2010: 15 to 30 years). The provision
has been estimated based on the current conditions of the sites, at the estimated costs to be incurred upon the expiry of
lease terms and discounted at the current market interest rate available to the Group. The provisions will be utilised over the
remaining lease periods which range from 1 to 16 years (2010: 1 to 16 years).
During the financial year, the Group revised the provision for decommissioning works based on the current estimated
cost of dismantling and restoration works. The revision was accounted as a change in accounting estimate and as a result,
the provision for site rectification and decommissioning works has decreased by RM46,955,000 with corresponding
decreases in finance costs and carrying amount of property, plant and equipment by RM36,213,000 and RM10,742,000
respectively in the current financial year.
Network construction cost and settlements
In the Directors’ opinion, the outcome of the notices of termination, legal claims, negotiations for settlements and costs in respect
of obligations under network construction contracts will not give rise to any significant loss beyond the amounts provided at the
reporting date.
31 PAYABLES AND ACCRUALS
GROUP
COMPANY
2011 2010 2011 2010
RM’000 RM’000 RM’000 RM’000
Current
Intercarrier and roaming payables 39,474 55,222 0 0
Intercarrier and roaming accruals 62,865 62,493 0 0
Subscribers’ deposits 132,743 141,019 0 0
Trade payables 908,256 1,095,827 0 0
Trade accruals 390,490 348,217 0 0
Other payables 111,625 114,008 39 11
Other accruals 763,053 842,400 1,777 1,597
Advance payments from subscribers 46,661 38,287 0 0
Deferred income 365,235 399,551 0 0
Payroll liabilities 5,398 4,693 0 0
Government grant 2,455 3,640 0 0
Non-current
2,828,255 3,105,357 1,816 1,608
Trade payables 59,351 41,884 0 0
Other accruals 1,213 4,322 0 0
60,564 46,206 0 0
2,888,819 3,151,563 1,816 1,608