Notes to the Financial StatementsFOR THE FINANCIAL YEAR ENDED 31 DECEMBER 200922. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)TelecommunicationMovable Computer CapitalFreehold network plant and support work-inlandBuildings equipment equipment systems progress Total<strong>Group</strong> RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000Net book valueAt 1 January 2008 25,047 123,667 9,320,947 189,610 216,983 2,283,583 12,159,837Additions 537 3,641 3,068,685 53,630 164,030 2,361,037 5,651,560Assetisation — 39,544 2,226,719 27,817 50,396 (2,344,476) —Disposals — (56) (56,351) (864) (15) (191) (57,477)Write off — — (4,929) (137) (2) — (5,068)Depreciation — (22,999) (2,084,926) (60,019) (132,902) — (2,300,846)Impairment — — (16,704) (21) — 3,887 (12,838)Currency translationdifferences 209 570 (340,997) 1,710 (5,672) (131,318) (475,498)At 31 December2008 25,793 144,367 12,112,444 211,726 292,818 2,172,522 14,959,670At 31 December2008Cost 32,858 243,537 19,305,008 459,436 1,158,691 2,220,836 23,420,366Accumulateddepreciation — (73,501) (6,882,955) (242,291) (855,096) — (8,053,843)Accumulatedimpairment (7,065) (25,669) (309,609) (5,419) (10,777) (48,314) (406,853)Net book value 25,793 144,367 12,112,444 211,726 292,818 2,172,522 14,959,670<strong>Axiata</strong> <strong>Group</strong> <strong>Berhad</strong> • 234
22. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)(a)The net book value of plant and machineries held under hire purchase and finance lease arrangements are asfollows:2009 2008RM’000 RM’000Telecommunication network equipment 5,587 9,527Movable plant and equipment 2,019 3,6147,606 13,141(b)During the financial year, the <strong>Group</strong> incurred net impairment losses of RM83.6 million (2008: RM12.8 million). Theallowance for the impairment losses relates primarily to the write down of certain telecommunication networkassets in which the assets had been written down to its recoverable values, net of reversal of impairment lossesof RM5.2 million (2008: RM16.0 million) in relation to capital work-in-progress made on a subsidiary’s longoutstanding projects which are now completed.(c)Net book value of property, plant and equipment of certain subsidiaries pledged as security for borrowings (Note16(a) and (b) to the financial statements) are as follow:2009 2008RM’000 RM’000Telecommunication network 1,761,655 1,600,651Movable plant and equipment 66,067 73,538Computer support systems 2,518 5,889Land 6,013 7,189Buildings 20,281 21,9761,856,534 1,709,243(d)There had been a change in the expected pattern of consumptions of future economic benefits embodied incertain telecommunication network equipment of subsidiaries within the <strong>Group</strong> due to physical verification exerciseand assets replacement plans. The revision was accounted for as a change in accounting estimate and hasincreased the depreciation charge during the financial year for the <strong>Group</strong> by RM300.9 million (2008: RM295.7million).(e)XL owns land located throughout Indonesia with Building Use Rights (Hak Guna Bangunan or “HGB”) for periodsof 20 to 30 years which will expire between 2012 to 2039.As at 31 December 2009, there are 129 locations with a total book value of RM17.3 million and for which HGBcertificates are in process.Annual Report 2009 • 235