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)18. Provision for impairment of assets2012OpeningbalanceDecrease duringthe yearProvisionfor theyear Write-back Write-offClosingbalanceBad debt provision 2,682,078 378,295 (47,811) (33,150) 2,979,412Including: Trade receivables 2,600,429 378,295 (47,684) (36,429) 2,894,611Long-term receivables 81,649 — (127) 3,279 84,801Provision for impairment ofinventories 1,074,135 307,448 (173,441) (64,278) 1,143,864Provision for impairment of Fixedassets — 2,559 — (500) 2,059Provision for impairment ofintangible assets 6,322 — — — 6,3223,762,535 688,302 (221,252) (97,928) 4,131,6572011OpeningbalanceDecrease duringthe yearProvisionfor the year Write-back Write-offClosingbalanceBad debt provision 2,182,947 618,479 (41,942) (77,406) 2,682,078Including: Trade receivables 2,089,518 618,469 (36,176) (71,382) 2,600,429Long-term receivables 93,429 10 (5,766) (6,024) 81,649Provision for impairment ofinventories 716,779 457,639 (87,489) (12,794) 1,074,135Provision for impairment ofintangible assets 6,322 — — — 6,3222,906,048 1,076,118 (129,431) (90,200) 3,762,535The Group determines at the balance sheet whether there is an indication of impairment in tradereceivables. Where there is such indication, the Group will estimate its recoverable amount and conductimpairment tests.Inventory is measured at the lower of cost and net realizable value. Where the cost is higher than thenet realisable value, provision for impairment in inventory is recognized in current profit or loss.230