Page 147 - MONO_AR_2016_EN

5.7
5.8
5.7 Borrowing costs
Depreciation is charged to profit or loss.
Depreciation is charged to profit or loss.
No depreciation is provided on land and assets under installation.
No depreciation is provided on land and assets under installation.
An item of property, plant and equipment is derecognised upon disposal or when no future
An item of property, plant and equipment is derecognised upon disposal or when no future
economic benefits are expected from its use. Any gain or loss arising on disposal of an asset is
economic benefits are expected from its use. Any gain or loss arising on disposal of an asset is
included in profit or loss when the asset is derecognised.
included in profit or loss when the asset is derecognised.
Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset
Borrowing costs directly attributable to the acquisition, construction or production of an asset
that necessarily takes a substantial period of time to get ready for its intended use or sale are
that necessarily takes a substantial period of time to get ready for its intended use or sale are
capitalised as part of the cost of the respective assets. All other borrowing costs are expensed
capitalised as part of the cost of the respective assets. All other borrowing costs are expensed
in the period they are incurred. Borrowing costs consist of interest and other costs that an entity
in the period they are incurred. Borrowing costs consist of interest and other costs that an entity
incurs in connection with the borrowing of funds.
incurs in connection with the borrowing of funds.
5.8 Intangible assets, cost of spectrum license and amortisation
Intangible assets, cost of spectrum license and amortisation
Intangible assets and cost of spectrum license are recognised at cost, and for the cost of
Intangible assets and cost of spectrum license are recognised at cost, and for the cost of
spectrum license was measured at the cash equivalent price based on the present value of
spectrum license was measured at the cash equivalent price based on the present value of
the installments. The difference between the total payment to be made and the cash
the installments. The difference between the total payment to be made and the cash
equivalent price is recognised as a finance cost over the license fee payment period, with
equivalent price is recognised as a finance cost over the license fee payment period, with
the cost being amortised from the time the Company is ready to provide commercial
the cost being amortised from the time the Company is ready to provide commercial
service.
service.
Following the initial recognition, intangible assets and cost of spectrum license are carried
Following the initial recognition, intangible assets and cost of spectrum license are carried
at cost less accumulated amortisation and accumulated impairment losses (if any).
at cost less accumulated amortisation and accumulated impairment losses (if any).
Intangible assets and cost of spectrum license with finite lives are amortised on a systematic
Intangible assets and cost of spectrum license with finite lives are amortised on a systematic
basis over the economic useful life and tested for impairment whenever there is an indication
basis over the economic useful life and tested for impairment whenever there is an indication
that an intangible asset may be impaired. The amortisation period and the amortisation method
that an intangible asset may be impaired. The amortisation period and the amortisation method
of such intangible assets are reviewed at least at each financial year end. The amortisation
of such intangible assets are reviewed at least at each financial year end. The amortisation
expense is charged to profit or loss.
expense is charged to profit or loss.
A summary of the intangible assets with finite useful lives is as follows:
A summary of the intangible assets with finite useful lives is as follows:
Cost of spectrum license
Useful lives
Useful lives
Useful lives
15
15
10
years
5, 10
years or contract peri
3, 5, 10
years or contract peri
10
years
5, 10
years
3, 5, 10
years or contract period
3, 5, 10, 20 years
3, 5, 10, 20 years
years
years or contract period
Cost of spectrum license
Cost of website
Cost of website
od od
7
7
147
Films, music and video copyright
Films, music and video copyright
Other copyright
Other copyright
Computer software
Computer software
Annual Report 2016 Mono Technology Public Company Limited