| 25. | PREPAYMENTS AND OTHER CURRENT ASSETS |
The nature of prepayments and other current assets, net of allowance for doubtful debts, are as follows:
| Note | 2016 | 2017 | ||||||||||
|
Receivables for the sales of mobile handsets, net of allowance |
(i | ) | 3,266 | 2,221 | ||||||||
|
Prepaid rental |
2,334 | 2,305 | ||||||||||
|
Deposits and prepayments |
1,876 | 1,579 | ||||||||||
|
Advances to employees |
15 | 20 | ||||||||||
|
VAT recoverable |
(ii | ) | 4,952 | 4,948 | ||||||||
|
Prepaid enterprise income tax |
208 | 438 | ||||||||||
|
Others |
1,372 | 2,290 | ||||||||||
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| 14,023 | 13,801 | |||||||||||
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| (i) | The Group offers preferential packages to the customers which include the bundle sales of mobile handsets and provision of service. The total contract consideration of such preferential packages is allocated to service revenue and sales of handsets based on their relative fair values. For those contractual preferential packages which the prepaid amounts from customers less than the fair value of the mobile handsets, the revenue relating to the sale of the handsets is recognized when the titles are passed to the customers and are calculated under the aforementioned relative fair value method, which results in the corresponding receivable for the sales of mobile handsets. The receivable for the sales of mobile handsets is gradually recovered during the contract period when the customers pay the monthly package fee. Receivables to be gradually recovered beyond one year amounted to RMB753 million (2016: RMB1,432 million), and are included in long-term other assets (see Note 22(iii)). |
| (ii) | VAT recoverable includes the input VAT and prepaid VAT that can be deducted within one year. |
Prepayments and other current assets are expected to be recovered or recognized as expenses within one year.
As of December 31, 2017, there was no significant impairment for the prepayments and other current assets.