Page 155 - China Mobile Limited - Annual Report 2012

China Mobile Limited
Annual Report 2012
149
Notes to the Financial Statements
(Expressed in Renminbi unless otherwise indicated)
42 Accounting Estimates and Judgements (Continued)
Key sources of estimation uncertainty (Continued)
Amortization of other intangible assets
Amortization of other intangible assets is calculated to write off the cost of items of other intangible assets using the
straight-line method over their estimated useful lives unless such lives are indefinite. The Group reviews the estimated
useful lives of other intangible assets annually in order to determine the amount of amortization expense to be recorded
during any reporting period. The useful lives are based on the estimate period over which future economic benefits will
be received by the Group and take into account any unexpected adverse changes in circumstances or events. The
amortization expense for future periods is adjusted if there are significant changes from previous estimates.
Impairment of property, plant and equipment, inventories, investment in associates, goodwill and other
intangible assets
The Group’s property, plant and equipment comprise a significant portion of the Group’s total assets. Changes in
technology or industry conditions may cause the estimated period of use or the value of these assets to change.
Property, plant and equipment, inventories, investment in associates and other intangible assets subject to
amortization, are reviewed at least annually to determine whether there is any indication of impairment. The recoverable
amount is estimated whenever events or changes in circumstances have indicated that their carrying amounts may not
be recoverable. In addition, for goodwill and other intangible assets have indefinite useful lives, the recoverable amount
is estimated annually whether or not there is any indication of impairment.
The recoverable amount of an asset is the greater of its net selling price and value-in-use. In assessing value-in-use,
the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset, which requires significant
judgement relating to level of revenue and amount of operating costs. The Group uses all readily available information
in determining an amount that is a reasonable approximation of the recoverable amount, including estimates based on
reasonable and supportable assumptions and projections of revenue and operating costs. Changes in these estimates
could have a significant impact on the carrying value of the assets and could result in impairment charge or reversal of
impairment in future periods.
43 Possible Impact of Amendments, New Standards and Interpretations Issued But
Not Yet Effective For The Year Ended 31 December 2012
Up to the date of issue of these financial statements, the IASB/HKICPA has issued a number of amendments and new
standards and interpretations which are not yet effective for the year ended 31 December 2012 and which have not
been adopted in these financial statements.