INTERNET GOLD GOLDEN LINES LTD | CIK:0001090159 | 3

  • Filed: 5/15/2018
  • Entity registrant name: INTERNET GOLD GOLDEN LINES LTD (CIK: 0001090159)
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    • ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory

    Note 8 - Property, Plant and Equipment

     

         Switching                
         Transmission,     Multi-     Office    
         power,     channel     equipment,    
         Cellular,     equipment     computers    
      Land and  And satellite  Network  and  Subscriber  and    
      buildings  equipment  equipment  infrastructure  equipment  vehicles  Total 
      NIS  NIS  NIS  NIS  NIS  NIS  NIS 
    Cost                     
    Balance as at
    January 1, 2016    		  1,061   5,000   5,505   867   1,203   941   14,577 
    Additions  27   457   247   180   265   73   1,249 
    Disposals  (37)  -   (12)  (11)  (4)  (11)  (75)
    Balance as at December 31, 2016  1,051   5,457   5,740   1,036   1,464   1,003   15,751 
                                 
    Balance as at
    January 1, 2017    		  1,051   5,457   5,740   1,036   1,464   1,003   15,751 
    Additions  34   408   228   165   278   75   1,188 
    Disposals  (81)  -   -   (1)  (4)  (2)  (88)
    Balance as at December 31, 2017  1,004   5,865   5,968   1,200   1,738   1,076   16,851 
                                 
    Depreciation and impairment                            
    Losses                            
    Balance as at
    January 1, 2016    		  350   2,951   2,486   143   770   664   7,364 
    Depreciation for the year  64   521   250   236   183   83   1,337 
    Disposals  (12)  -   -   (10)  -   -   (22)
    Balance as at December 31, 2016  402   3,472   2,736   369   953   747   8,679 
                                 
    Balance as at January 1, 2017  402   3,472   2,736   369   953   747   8,679 
    Depreciation for the year  53   481   204   222   187   85   1,232 
    Balance as at December 31, 2017  455   3,953   2,940   591   1,140   832   9,911 
                                 
    Carrying amounts                            
    As at January 1, 2016  711   2,049   3,019   724   433   277   7,213 
    As at December 31, 2016  649   1,985   3,004   667   511   256   7,072 
    As at December 31, 2017  549   1,912   3,028   609   598   244   6,940 

     

    A.The residual value of the Bezeq Group’s copper cables is assessed at the end of each quarter. The residual value is NIS 188 as at December 31, 2017 and NIS 154 as at December 31, 2016.

     

    B.Property, plant and equipment in the Bezeq Group is derecognized at the end of each year upon reaching full depreciation, except for land, buildings, vehicles, copper cables and specific components for Pelephone’s UMTS network, which are derecognized upon their sale. In 2017, the Bezeq Group derecognized fully depreciated property at a cost of NIS 496 (in 2016, NIS 894).

     

    C.Bezeq Group companies review the useful life of the property, plant and equipment through their depreciation committees, in order to determine the estimated useful life of their equipment. The change is not expected to have a material impact on the depreciation expenses of the Group. Following the findings of the committees, minor changes were made in the estimated useful life of certain assets.

     

    D.Most of the real estate assets used by the Bezeq Group are leased under a capitalized finance lease from the Israel Lands Administration for 49 years beginning as of 1993, with an option for an extension of another 49 years. The lease rights are amortized over the term of the lease period.

     

    E.In 2013, Bezeq started to install a fiber optic network that will reach the subscriber’s home. In 2017, deployment of fibers reached the state required for operation when a decision is made on the technology to be used, and Bezeq began to amortize the network. Commercial operation of the network is expected in the future.

     

    F.At the reporting date, there are commitments to purchase property, plant and equipment in the amount of NIS 136 (in 2016: NIS 139).

     

    G.In accordance with the Telecommunications Order (Telecommunications and Broadcasts) (Determination of Essential Service Provided by Bezeq The Israel Telecommunication Corp. Ltd.), 1997, approval from the Prime Minister and Minister of Communications is required to confer rights in some of Bezeq’s assets (including switches, cable network, transmission network, and information and databases).

     

    H.For information about pledges see Note 22.

     

    I.For information about pledges on loans and borrowings, see Note 13.