Annual Report 2012, PDF - Axiata Group Berhad - Investor Relations

NOTES TO THEFINANCIAL STATEMENTSFOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2012 (CONTINUED)3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)(c) Property, plant and equipment (“PPE”) (continued)(iv) Gains or losses on disposalsGains or losses on disposals are determined by comparing the proceeds with the carrying amount ofthe related asset and are included in the profit or loss.(v) Asset exchange transactionPPE may be acquired in exchange for a non-monetary asset or for a combination of monetary andnon-monetary assets and is measured at fair value unless;• the exchange transaction lacks commercial substance; or• the fair value of neither the assets received nor the assets given up can be measured reliably.The acquired item is measured in this way even if the Group and the Company cannot immediatelyderecognise the assets given up. If the acquired item cannot be reliably measured at fair value, its costis measured at the carrying amount of the asset given up.(vi) Repairs and maintenanceRepairs and maintenance are charged to the profit or loss during the period in which they are incurred.The cost of major renovations is included in the carrying amount of the asset when it is probable thatfuture economic benefits in excess of the originally assessed standard of performance of the existingasset will flow to the Group and the Company. This cost is depreciated over the remaining useful lifeof the related asset.(d) Investment propertiesInvestment properties principally comprising freehold land and buildings, are held for long term rental yieldsor for capital appreciation or both, and are not occupied by the Group.Investment properties are stated at cost less accumulated depreciation and impairment losses. Investmentproperties are depreciated on a straight-line basis to write off the cost of investment properties to theirresidual values over their estimated useful lives as summarised below:Freehold landBuildingsindefinite useful life50 yearsOn disposal of an investment property, or when it is permanently withdrawn from use and no futureeconomic benefits are expected, then it shall be derecognised. The difference between the net disposalproceeds and the carrying amount is recognised as profit or loss in the period of the retirement or disposal.184