ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory
|
e. |
Property and equipment
|
Property and equipment are initially stated at cost.
Costs are included in the assets' carrying amounts or recognized as separate assets, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance that do not meet the above criteria are charged to the statement of income during the financial period in which they are incurred.
Costs include expenditures that are directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labor, any other costs directly attributable to bringing the asset to a working condition for its intended use, and the costs of dismantling and removing the items and restoring the site on which they are located.
Changes in the obligation to dismantle and remove assets on sites and to restore the sites, on which they are located, other than changes deriving from the passing of time, are added or deducted from the cost of the assets in the period in which they occur. The amount deducted from the cost of the asset shall not exceed the balance of the carrying amount on the date of change, and any balance is recognized immediately in profit or loss, See (m)(2).
Purchased software that is integral to the functionality of the related equipment is capitalized as part of that equipment.
Property
and equipment is presented less accumulated depreciation, and accumulated impairment losses. An asset’s carrying amount
is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable
amount (see (i)).
Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, as follows:
| |
years
|
|
Communications network:
|
|
|
Physical layer and infrastructure
|
10 - 25 (mainly 15, 10)
|
|
Other Communication network
|
3 - 15 (mainly 5, 10, 15)
|
|
Computers, software and hardware for information systems
|
3-10 (mainly 3-5)
|
|
Office furniture and equipment
|
7-15
|
|
Optic fibers and related assets
|
7-25 (mainly 20)
|
|
Subscribers equipment and installations
|
2 - 4
|
|
Property
|
25
|
Leasehold improvements are depreciated by the straight-line method over the term of the lease (including reasonably assured option periods), or the estimated useful life (5‑10 years) of the improvements, whichever is shorter.
See note 13(2) with respect of impairment charges in 2015.