2012 Annual Report - ZTE

ZTE CORPORATIONNotes to Financial Statements(Prepared under Hong Kong Financial Reporting Standards)31 December 20122.4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)Investment properties (continued)For a transfer from investment properties to owner-occupied properties or inventories, the deemed cost ofa property for subsequent accounting is its fair value at the date of change in use. If a property occupiedby the Group as an owner-occupied property becomes an investment property, the Group accounts forsuch property in accordance with the policy stated under “Property, plant and equipment and depreciation”up to the date of change in use, and any difference at that date between the carrying amount and the fairvalue of the property is accounted for as a revaluation in accordance with the policy stated under “Property,plant and equipment and depreciation” above. For a transfer from inventories to investment properties, anydifference between the fair value of the property at that date and its previous carrying amount is recognisedin the profit or loss.Intangible assets (other than goodwill)Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assetsacquired in a business combination is the fair value at the date of acquisition. The useful lives of intangibleassets are assessed to be either finite or indefinite. Intangible assets with finite lives are subsequentlyamortised over the useful economic life and assessed for impairment whenever there is an indication thatthe intangible asset may be impaired. The amortisation period and the amortisation method for an intangibleasset with a finite useful life are reviewed at least at each financial year end.Technology know-howPurchased technology know-how is stated at cost less accumulated amortisation and any impairment losses.Amortisation is provided on the straight-line basis over its estimated useful life of not more than 10 years.Computer softwarePurchased computer software is stated at cost less accumulated amortisation and any impairment losses,and is amortised on the straight-line basis over its estimated useful life of 5 years.Operating concessionOperating concession is stated at cost less accumulated amortisation and any impairment losses.Amortisation is provided on the straight-line basis for 3 to 10 years, being the period that the operatingconcession granted to the Group.336