China Communications Services Corporation Limited Annual Report 2015
133
NOTES TO THE
CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2015
19. LEASE PREPAYMENTS
2015
2014
RMB’000
RMB’000
Cost:
As at 1 January
1,083,566
1,082,997
Additions
5,102
5,227
Disposals
(69,324)
(4,658)
As at 31 December
1,019,344
1,083,566
Released to profit or loss:
As at 1 January
211,218
185,170
Amortisation charge
27,912
27,525
Disposals
(13,372)
(1,477)
As at 31 December
225,758
211,218
Net carrying value:
As at 31 December
793,586
872,348
As at 1 January
872,348
897,827
Lease prepayments represent payments for land use rights paid to the PRC authorities. The Group’s land use rights are
located in the PRC and are with remaining terms ranging from 12 to 64 years as at 31 December 2015.
20. GOODWILL
2015
2014
RMB’000
RMB’000
Cost and carrying amount
103,005
103,005
2015
2014
RMB’000
RMB’000
Impairment tests for cash-generating units containing goodwill
China International Telecommunications Construction Corporation (“CITCC”)
103,005
103,005
The recoverable amounts of goodwill arising from the acquisition of CITCC are determined based on value in use
calculation. The calculation uses cash flow projection based on financial budget approved by management covering a five-
year period and pre-tax discount rates is 13.13 % (2014: 13.82%).
Cash flows beyond the five years period are extrapolated using zero growth rate. Management believes any reasonably
possible change in the key assumptions on which these entities’ recoverable amount are based would not cause these
entities’ carrying amounts to exceed their recoverable amounts.
