2012 Annual Report - ZTE

ZTE CORPORATIONNotes to Financial Statements (continued)(Prepared in accordance with PRC ASBEs)(All amounts in RMB’000 unless otherwise stated)(English translation for reference only)V. EXPLANATORY NOTES TO MAJOR ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS(continued)16. Intangible assets (continued)2011CostOpeningbalanceIncreaseduring theyearDecreaseduring theyearClosingbalanceSoftware 389,217 52,509 (54,189) 387,537Technology know-how 7,184 — (200) 6,984Land use right 827,574 124,583 (1,922) 950,235Operating concessions 94,157 296,966 (55,633) 335,490Accumulated amortization1,318,132 474,058 (111,944) 1,680,246Software 308,508 31,967 (52,042) 288,433Technology know-how 4,004 491 (60) 4,435Land use right 46,022 16,983 — 63,005Operating concessions 61,986 89,199 (28,080) 123,105Net book value420,520 138,640 (80,182) 478,978Software 80,709 20,542 (2,147) 99,104Technology know-how 3,180 (491) (140) 2,549Land use right 781,552 107,600 (1,922) 887,230Operating concessions 32,171 207,767 (27,553) 212,385Provision for impairment897,612 335,418 (31,762) 1,201,268Software — — — —Technology know-how — — — —Land use right 6,322 — — 6,322Operating concessions — — — —Book value6,322 — — 6,322Software 80,709 20,542 (2,147) 99,104Technology know-how 3,180 (491) (140) 2,549Land use right 775,230 107,600 (1,922) 880,908Operating concessions 32,171 207,767 (27,553) 212,385891,290 335,418 (31,762) 1,194,946Amortisation of intangible assets in 2012 amounted to RMB142,923,000 (2011: RMB138,640,000).At 31 December 2012, intangible assets with a book value of RMB24,171,000 (31 December 2011:RMB3,681,000) were subject to ownership restriction as they had been pledged as security forborrowings.226