MTA » Topics » (h) Property, plant and equipment

This excerpt taken from the MTA 20-F filed Feb 22, 2007.

(h) Property, plant and equipment

Property, plant and equipment are stated at historical cost less accumulated depreciation and impairment losses.

The cost of an item of property, plant and equipment comprises its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates, any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. The initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located is also included in the costs if the obligation incurred can be recognized as a provision according to IAS 37—Provisions, Contingent Liabilities and Contingent Assets.

Government grants relating to the purchase of property, plant and equipment are deducted from the original cost of the items and are recognized in the income statement through the reduced amount of depreciation of the related assets over their useful lives. Investment tax credits relating to qualifying investment projects are also recognized in this manner (note 26).

Cost in the case of the outside plant comprises of all expenditures including the cabling within customers’ premises and interest on related loans.

When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts and any related gain or loss is recognized in the income statement in Other operating expenses.

Maintenance and repairs are charged to expense when incurred.

Depreciation is calculated on a straight-line basis from the time the assets are deployed and charged over their economic useful lives. Magyar Telekom regularly reviews the useful lives for consistency with current development plans and advances in technology.

The useful lives assigned are as follows:

 

 

Years

 

Buildings

 

10 - 50

 

Duct, cable and other outside plant

 

25 - 38

 

Other telecommunications equipment

 

7 - 15

 

Other fixed assets

 

3 - 12

 

 

This excerpt taken from the MTA 20-F filed May 11, 2005.

(h) Property, plant and equipment

        Property, plant and equipment are stated at historical cost less accumulated depreciation and impairment losses. Cost in the case of the outside plant comprises of all expenditures including the cabling within customers' premises and interest on related loans.

        When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts and any related gain or loss is recognized in the income statement.

        Maintenance and repairs are charged to expense when incurred.

        Depreciation is calculated on a straight-line basis from the time the assets are deployed over their economic useful lives. Matáv regularly reviews the useful lives for consistency with current development plans and advances in technology.

        The useful lives assigned are as follows:

Buildings   10 - 50 years
Duct, cable and other outside plant   25 - 38 years
Telecommunications exchanges   7 - 15 years
Other fixed assets   3 - 12 years

EXCERPTS ON THIS PAGE:

20-F
Feb 22, 2007
20-F
May 11, 2005
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