TELECOM ARGENTINA SA | CIK:0000932470 | 3

  • Filed: 4/20/2018
  • Entity registrant name: TELECOM ARGENTINA SA (CIK: 0000932470)
  • Generator: Merrill
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    • ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory

     

    Note 8 – Property, plant and equipment

     

    PP&E consist of the following:

     

     

     

    As of December 31,

     

     

     

    2017

     

    2016

     

    Land, buildings and installations

     
    1,576

     
    1,310

     

    Computer equipment and software

     
    2,586

     
    2,265

     

    Switching and transmission equipment (i)

     
    6,576

     
    5,614

     

    Mobile network access and external wiring

     
    11,256

     
    9,078

     

    Construction in progress

     
    4,138

     
    2,915

     

    Other tangible assets

     
    831

     
    704

     

     

     

     

     

     

     

    Subtotal PP&E 

     
    26,963

     
    21,886

     

    Materials

     
    2,024

     
    1,629

     

    Valuation allowance for materials and impairment of materials

     
    (144)

     
    (68)

     

    Impairment of PP&E

     
    (305)

     
    (282)

     

     

     

     

     

     

     

    Total 

     
    28,538

     
    23,165

     

     

     

     

     

     

     

     

    (i)

    Includes tower and pole, transmission equipment, switching equipment, power equipment, equipment lent to customers at no cost and handsets lent to customers at no cost.

     

    Movements in Materials are as follows:

     

     

     

    Years ended December 31,

     

     

     

    2017

     

    2016

     

    At the beginning of the year

     
    1,629

     
    1,652

     

    Plus:

     

     

     

     

     

    Increase for Tuves Paraguay acquisition

     
    72

     

    -

     

    Purchases

     
    5,133

     
    3,647

     

    Less:

     

     

     

     

     

    Transfers to CAPEX

     
    (3,700)

     
    (3,173)

     

     

     

     

     

     

     

    Disposal for maintenance

     
    (1,125)

     
    (507)

     

    Currency translation adjustments

     
    15

     
    10

     

     

     

     

     

     

     

    At the end of the year

     
    2,024

     
    1,629

     

     

     

     

     

     

     

     

    Movements in the valuation allowance for materials and impairment of materials are as follows:

     

     

     

    Years ended December 31,

     

     

     

    2017

     

    2016

     

    At the beginning of the year

     
    (68)

     
    (52)

     

    Additions – Fees for services, maintenance and materials

     
    (94)

     
    (16)

     

    Decrease

     
    18

     

    -

     

     

     

     

     

     

     

    At the end of the year

     
    (144)

     
    (68)

     

     

     

     

     

     

     

     

    Movements in the impairment of PP&E are as follows:

     

     

     

    Years ended December 31,

     

     

     

    2017

     

    2016

     

    At the beginning of the year

     
    (282)

     
    (203)

     

    Additions

     
    (234)

     
    (367)

     

    Uses

     
    211

     
    288

     

     

     

     

     

     

     

    At the end of the year

     
    (305)

     
    (282)

     

     

     

     

     

     

     

     

    Details on the nature and movements during the years ended December 31, 2017 and 2016 are as follows:

     

     

     

    Gross
    value as
    of
    December
    31, 2016

     

    Tuves
    Paraguay
    acquisition

     

     

     

    CAPEX

     

     

    Currency
    translation
    adjustments

     

     

    Transfers and
    reclassifications

     

     

     

    Decreases

     

    Gross
    value as
    of
    December
    31, 2017

     

    Land

     
    151

     

    -

     

    -

     
    2

     

    -

     

    -

     
    153

     

    Building

     
    1,877

     

    -

     

    -

     
    12

     
    103

     

    -

     
    1,992

     

    Tower and pole

     
    1,697

     

    -

     

    -

     
    103

     
    188

     

    -

     
    1,988

     

    Transmission equipment

     
    8,010

     

    -

     
    66

     
    189

     
    1,301

     
    (58)

     
    9,508

     

    Mobile network access

     
    8,443

     

    -

     
    26

     
    329

     
    2,072

     
    (467)

     
    10,403

     

    External wiring

     
    11,529

     

    -

     

    -

     

    -

     
    1,927

     
    (1)

     
    13,455

     

    Switching equipment

     
    8,916

     

    -

     
    64

     
    331

     
    255

     

    -

     
    9,566

     

    Power equipment

     
    1,727

     

    -

     

    -

     
    76

     
    285

     
    (2)

     
    2,086

     

    Computer equipment and systems

     
    11,401

     

    -

     
    56

     
    518

     
    1,311

     
    (36)

     
    13,250

     

    Telephony equipment and instruments

     
    845

     

    -

     
    4

     
    3

     
    51

     

    -

     
    903

     

    Handsets lent to customers at no cost

     
    543

     
    171

     
    56

     
    97

     

    -

     
    (50)

     
    817

     

    Equipment lent to customers at no cost

     
    267

     

    -

     
    224

     

    -

     
    10

     
    (126)

     
    375

     

    Vehicles

     
    429

     

    -

     
    130

     
    9

     

    -

     
    (23)

     
    545

     

    Furniture

     
    202

     

    -

     
    3

     
    11

     
    18

     

    -

     
    234

     

    Installations

     
    1,172

     

    -

     

    -

     
    17

     
    324

     

    -

     
    1,513

     

    Improvements in third parties buildings

     
    755

     

    -

     
    4

     
    53

     
    55

     

    -

     
    867

     

    Special projects

     
    89

     

    -

     

    -

     

    -

     
    32

     

    -

     
    121

     

    Construction in progress

     
    2,915

     

    -

     
    9,237

     
    25

     
    (7,932)

     
    (107)

     
    4,138

     

    Asset retirement obligations

     
    189

     

    -

     
    35

     

    -

     

    -

     

    -

     
    224

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Total 

     
    61,157

     
    171

     
    9,905

     
    1,775

     

    -

     
    (870)

     
    72,138

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Accumulated
    depreciation
    as of
    December 31,
    2016

     

    Tuves
    Paraguay
    acquisition

     

     

    Depreciation

     

    Currency
    translation
    adjustment

     

    Decrease
    and
    reclassifications

     

    Accumulated
    depreciation
    as of
    December
    31, 2017

     

    Net carrying
    value as of
    December 31,
    2017

     

    Land

     

    -

     

    -

     

    -

     

    -

     

    -

     

    -

     
    153

     

    Building

     
    (1,171)

     

    -

     
    (52)

     
    13

     

    -

     
    (1,210)

     
    782

     

    Tower and pole

     
    (712)

     

    -

     
    (97)

     
    (52)

     

    -

     
    (861)

     
    1,127

     

    Transmission equipment

     
    (5,793)

     

    -

     
    (633)

     
    (113)

     
    (57)

     
    (6,596)

     
    2,912

     

    Mobile network access

     
    (3,910)

     

    -

     
    (1,146)

     
    (226)

     
    257

     
    (5,025)

     
    5,378

     

    External wiring

     
    (6,984)

     

    -

     
    (593)

     

    -

     

    -

     
    (7,577)

     
    5,878

     

    Switching equipment

     
    (7,342)

     

    -

     
    (703)

     
    (282)

     
    118

     
    (8,209)

     
    1,357

     

    Power equipment

     
    (1,050)

     

    -

     
    (119)

     
    (45)

     
    2

     
    (1,212)

     
    874

     

    Computer equipment and systems

     
    (9,136)

     

    -

     
    (1,112)

     
    (450)

     
    34

     
    (10,664)

     
    2,586

     

    Telephony equipment and instruments

     
    (789)

     

    -

     
    (22)

     
    (3)

     

    -

     
    (814)

     
    89

     

    Handsets lent to customers at no cost

     
    (508)

     
    (83)

     
    (75)

     
    (98)

     
    50

     
    (714)

     
    103

     

    Equipment lent to customers at no cost

     
    (141)

     

    -

     
    (155)

     

    -

     
    124

     
    (172)

     
    203

     

    Vehicles

     
    (223)

     

    -

     
    (57)

     
    (4)

     
    17

     
    (267)

     
    278

     

    Furniture

     
    (146)

     

    -

     
    (15)

     
    (9)

     

    -

     
    (170)

     
    64

     

    Installations

     
    (719)

     

    -

     
    (137)

     
    (16)

     

    -

     
    (872)

     
    641

     

    Improvements in third parties buildings

     
    (529)

     

    -

     
    (89)

     
    (42)

     

    -

     
    (660)

     
    207

     

    Special projects

     
    (47)

     

    -

     
    (17)

     

    -

     

    -

     
    (64)

     
    57

     

    Construction in progress

     

    -

     

    -

     

    -

     

    -

     

    -

     

    -

     
    4,138

     

    Asset retirement obligations

     
    (71)

     

    -

     
    (17)

     

    -

     

    -

     
    (88)

     
    136

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Total 

     
    (39,271)

     
    (83)

     
    (5,039)

     
    (1,327)

     
    545

     
    (45,175)

     
    26,963

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Gross value
    as of
    December
    31, 2015

     

     

     

    CAPEX

     

     

    Currency
    translation
    adjustments

     

     

    Transfers and
    reclassifications

     

     

     

    Decreases

     

    Gross Value
    as of
    December
    31, 2016

     

    Land

     
    149

     

    -

     
    2

     

    -

     

    -

     
    151

     

    Building

     
    1,771

     

    -

     
    11

     
    95

     

    -

     
    1,877

     

    Tower and pole

     
    1,238

     

    -

     
    82

     
    377

     

    -

     
    1,697

     

    Transmission equipment

     
    6,880

     
    64

     
    147

     
    959

     
    (40)

     
    8,010

     

    Mobile network access

     
    5,242

     
    128

     
    250

     
    3,435

     
    (612)

     
    8,443

     

    External wiring

     
    10,208

     

    -

     

    -

     
    1,407

     
    (86)

     
    11,529

     

    Switching equipment

     
    7,791

     
    75

     
    272

     
    830

     
    (52)

     
    8,916

     

    Power equipment

     
    1,449

     

    -

     
    60

     
    220

     
    (2)

     
    1,727

     

    Computer equipment and systems

     
    9,663

     
    28

     
    408

     
    1,304

     
    (2)

     
    11,401

     

    Telephony equipment and instruments

     
    806

     

    -

     
    3

     
    37

     
    (1)

     
    845

     

    Handsets lent to customers at no cost

     
    505

     
    54

     
    99

     

    -

     
    (115)

     
    543

     

    Equipment lent to customers at no cost

     
    190

     
    150

     

    -

     
    3

     
    (76)

     
    267

     

    Vehicles

     
    380

     
    56

     
    7

     

    -

     
    (14)

     
    429

     

    Furniture

     
    165

     
    2

     
    9

     
    26

     

    -

     
    202

     

    Installations

     
    905

     

    -

     
    15

     
    252

     

    -

     
    1,172

     

    Improvements in third parties buildings

     
    574

     
    8

     
    40

     
    133

     

    -

     
    755

     

    Special projects

     
    77

     

    -

     

    -

     
    12

     

    -

     
    89

     

    Construction in progress

     
    3,015

     
    9,022

     
    22

     
    (9,090)

     
    (54)

     
    2,915

     

    Asset retirement obligations

     
    141

     
    45

     
    3

     

    -

     

    -

     
    189

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Total 

     
    51,149

     
    9,632

     
    1,430

     

    -

     
    (1,054)

     
    61,157

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Accumulated
    depreciation
    as of
    December 31,
    2015

     

     

     

    Depreciation

     

     

    Currency
    translation
    adjustments

     

     

     

    Decreases
    and
    transfers

     

    Accumulated
    depreciation
    as of
    December
    31, 2016

     

    Net
    carrying
    value as of
    December
    31, 2016

     

    Land

     

    -

     

    -

     

    -

     

    -

     

    -

     
    151

     

    Building

     
    (1,134)

     
    (41)

     
    4

     

    -

     
    (1,171)

     
    706

     

    Tower and pole

     
    (596)

     
    (77)

     
    (39)

     

    -

     
    (712)

     
    985

     

    Transmission equipment

     
    (5,265)

     
    (476)

     
    (87)

     
    35

     
    (5,793)

     
    2,217

     

    Mobile network access

     
    (3,210)

     
    (877)

     
    (147)

     
    324

     
    (3,910)

     
    4,533

     

    External wiring

     
    (6,597)

     
    (472)

     

    -

     
    85

     
    (6,984)

     
    4,545

     

    Switching equipment

     
    (6,327)

     
    (856)

     
    (211)

     
    52

     
    (7,342)

     
    1,574

     

    Power equipment

     
    (921)

     
    (97)

     
    (34)

     
    2

     
    (1,050)

     
    677

     

    Computer equipment and systems

     
    (7,778)

     
    (997)

     
    (363)

     
    2

     
    (9,136)

     
    2,265

     

    Telephony equipment and instruments

     
    (773)

     
    (15)

     
    (2)

     
    1

     
    (789)

     
    56

     

    Handsets lent to customers at no cost

     
    (475)

     
    (50)

     
    (98)

     
    115

     
    (508)

     
    35

     

    Equipment lent to customers at no cost

     
    (101)

     
    (116)

     

    -

     
    76

     
    (141)

     
    126

     

    Vehicles

     
    (183)

     
    (47)

     
    (4)

     
    11

     
    (223)

     
    206

     

    Furniture

     
    (128)

     
    (11)

     
    (7)

     

    -

     
    (146)

     
    56

     

    Installations

     
    (603)

     
    (102)

     
    (14)

     

    -

     
    (719)

     
    453

     

    Improvements in third parties buildings

     
    (403)

     
    (98)

     
    (28)

     

    -

     
    (529)

     
    226

     

    Special projects

     
    (34)

     
    (13)

     

    -

     

    -

     
    (47)

     
    42

     

    Construction in progress

     

    -

     

    -

     

    -

     

    -

     

    -

     
    2,915

     

    Asset retirement obligations

     
    (55)

     
    (13)

     
    (3)

     

    -

     
    (71)

     
    118

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Total 

     
    (34,583)

     
    (4,358)

     
    (1,033)

     
    703

     
    (39,271)

     
    21,886