Page 94 - China Mobile Limited - Annual Report 2012

China Mobile Limited

Annual Report 2012

88

Notes to the Financial Statements

(Expressed in Renminbi unless otherwise indicated)

1 Significant Accounting Policies (Continued)

(j) Impairment of assets (Continued)

(i) Impairment of investments in equity securities and receivables (Continued)

–

If in a subsequent period the amount of an impairment loss decreases and the decrease can be

linked objectively to an event occurring after the impairment loss was recognized, the impairment loss

is reversed through profit or loss. A reversal of an impairment loss shall not result in the asset’s

carrying amount exceeding that which would have been determined had no impairment loss been

recognized in prior years.

Impairment losses are written off against the corresponding assets directly, except for impairment losses

recognized in respect of debtors included within trade and other receivables, whose recovery is considered

doubtful but not remote. In this case, the impairment losses for doubtful debts are recorded using an

allowance account. When the Group is satisfied that recovery is remote, the amount considered

irrecoverable is written off against trade debtors directly and any amounts held in the allowance account

relating to that debt are reversed. Subsequent recoveries of amounts previously charged to the allowance

account are reversed against the allowance account. Other changes in the allowance account and

subsequent recoveries of amounts previously written off directly are recognized in profit or loss.

(ii) Impairment of other assets

Internal and external sources of information are reviewed at the end of each reporting period to identify

indications that the following assets may be impaired or, except in the case of goodwill, an impairment loss

previously recognized no longer exists or may have decreased:

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property, plant and equipment;

–

construction in progress;

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prepaid interests in leasehold land classified as being held under an operating lease;

–

investments in subsidiaries;

–

goodwill; and

–

other intangible assets.

If any such indication exists, the asset’s recoverable amount is estimated. For goodwill and other intangible

assets that have indefinite useful lives, the recoverable amount is estimated annually whether or not there is

any indication of impairment.