Customer base trademarks and roaming agreements were

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Unformatted text preview: capitalised and amortised over the remaining useful life of the concession. Repair and maintenance are expensed as incurred. uninor’s GSM 1800 licenses (22 licenses, one for each telecom circle) in India which were issued in 2008 and originally valid until 2028 have now been cancelled by the Indian Supreme Court with effect from 2 June 2012 and as a result, an impairment loss of NOK 2.8 billion was recognised in income statement. See note 35 and 38 for further information. The existing 2G license of Grameenphone in Bangladesh was valid until November 2011 and is, therefore, fully amortised as of 31 December 2011. Bangladesh Telecommunication Regulatory Commission (BTRC) issued license renewal guidelines in September 2011. The license could not be renewed after the expiry of the existing license due to certain ambiguities in the license renewal process, see note 35 for further information. However, Grameenphone was allowed to continue its operations under the old license until the matter is resolved and license is renewed. According to the guidelines, the renewed license will have a term of 15 years. The total licence renewal cost is NOK 2.4 billion. The intangible assets included above have finite useful lives except for certain trademarks which have indefinite useful lives with a carrying amount of NOK 939 million as of 31 December 2011, mainly represented by the trademark of DTAC. Cash-generating units to which trademarks with indefinite useful lives relates are tested for impairment annually or more frequently if there is any indication that the cashgenerating unit may be impaired. See note 18 for impairment testing of the cash-generating units. When assessing an indefinite useful life of a particular trademark, the Group considers whether no foreseeable limit exists on its use and a normal level of sales and marketing expense is incurred to maintain that specific trademark. Customer base, trademarks and roaming agreements were acquired as part of business combinations. Licenses consist, in addition to the DTAC concession right, primarily of mobile licenses that were acquired separately or as part of business combinations. The amortisation period for customer bases is the expected customer relationship period based on historical experience of churn for the individual businesses, and varies primarily between 2 to 5 years. Licenses and roaming agreements are amortised over the license periods (10 to 24 years, excluding the DTAC concession right). Trademarks with finite useful lives are amortised over their estimated useful lives, which is 15 years. Software is amortised over their estimated useful lives. Given the history of rapid changes in technology, software is susceptible to technological obsolescence and therefore, their estimated useful life is normally 3 to 7 years. /page 49/ telenor annual report 2011 notes to the financial statements / telenor group / 20 / Property, plant and equipment local, Corporate regional Mobile switches Radio and trunk telephone subscriber and installa Cable TV NOK in millions networks network equipment equipment tions equipment buildings land assets satellites progress 1) 2 588 13 906 (1) (13) 277 1 005 875 28 1 9 825 48 1 442 Accumulated cost As of 1 January 2010 Reclassifications 2) Additions Additions through acquisition of subsidiaries Translation differences derecognition As of 31 December 2010 Reclassifications 2) Additions Additions through acquisition of subsidiaries Translation differences derecognition As of 31 December 2011 39 696 67 2 079 22 358 (127) 1 281 1 413 1 203 19 784 15 122 (448) 613 1 635 1 779 adminis trative 4 589 - - Work in Total 5 308 135 464 (57) 111 (666) 9 036 22 - 211 478 (603) (588) 41 472 23 402 786 157 2 220 1 883 - - - 54 232 99 (167) (292) (186) 1 504 20 911 17 427 8 (369) 302 199 1 063 1 737 - - (1) (118) (33) (635) 2 830 14 145 - 109 238 330 1 6 27 130 (9) (4 167) 923 7 284 - 127 1 851 - - 29 - 80 1 192 - (58) (6 738) 4 589 4 607 139 094 - (1 046) 74 (6) 1 639 10 155 - - (344) (771) (1 468) (1 417) 42 666 23 254 - - - (1) (501) (717) (222) (1 044) (5 714) 1 488 20 060 13 035 7 - - (212) (135) (568) 2 940 13 804 - (19) (4) 901 - - - 4 583 Accumulated depreciation and impairment losses As of 1 January 2010 (29 623) (11 994) (1 062) (13 918) (7 536) (1 471) (6 005) Reclassifications 2) (41) 241 - (19) (46) - (5) depreciation (2 197) (2 466) (224) (1 469) (2 715) (216) (570) Translation differences (116) (173) (55) (122) (5) (1) 39 derecognition 597 550 166 278 180 32 404 As of 31 December 2010 (31 380) (13 842) (1 175) (15 250) (10 122) (1 656) (6 137) Reclassifications 2) (458) (13) (1) 351 (79) - (15) depreciation (2 215) (2 839) (226) (1 520) (2 203) (242) (592) impairment loss (1) (3) - - - - (1) Translation differences 145 486 1 153 276 - 40 derecognition 1 463 1 346 208 1 016 5 663 90 535 As of 31 December 2011 (32 446) (14 865) (1 193) (15 250) (6 465) (1 808) (6 170) - (303) (629) 7 330 (16) (6 191) (2 018) (5) (39) - (2) (1 207) (204) - (86) - - 3 235 - (23) (4 288) (2 222) - 6 - (1) (1 141) (184) - (31) - - 169 - 1 533 - (23) (4 752) (2 406) - 7 (150) (3 018) (113) (11 314) 4 937 134 998 (32) - - 1 (5) (36) 17 - - 2 17 - (79 866) 86 (11 270) (518) 5 437 (86 131) (192) (11 163...
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