Huawei 2008 Annual Report Download - page 31

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Huawei Technologies Co., Ltd. (the "Company") is a company
domiciled in Shenzhen in the People's Republic of China
(the "PRC"). The consolidated financial statements of the
Company and its subsidiaries (the "Group") for the year
ended 31 December 2008 comprise the Company and its
subsidiaries and the Group's interest in an associate and jointly
controlled entities. The Group's activities involve research and
development, production and sale of telecommunications
equipment and provision of related services.
Reporting Entity
Revenue Recognition Policy
Property, plant and equipment
Provided it is probable that the economic benets will ow to the
Group and the revenue and costs, if applicable, can be measured
reliably, revenue is recognised in the consolidated income
statement as follows:
i) Sale of goods and services rendered
Revenue from sales of goods is recognised when the signicant
risks and rewards of ownership of goods have been transferred
to the buyer. Revenue from provision of services is recognised
at the time when the services are provided. No revenue is
recognised if there are significant uncertainties regarding the
recovery of the consideration due, associated costs or the
possible return of goods. Revenue excludes value added tax or
other sales taxes and is after deduction of any trade discounts.
ii) Contract revenue
When the outcome of a construction contract can be estimated
reliably, revenue from a xed price contract is recognised using
the percentage of completion method, measured by reference
to the percentage of contract costs incurred to date to estimated
total contract costs for the contract; and When the outcome of
a construction contract cannot be estimated reliably, revenue is
recognised only to the extent of contract costs incurred that it is
probable will be recoverable.
iii) Rental income from operating leases
Rental income receivable under operating leases is recognised
in the consolidated income statement in equal instalments
over the periods covered by the lease term, except where an
alternative basis is more representative of the pattern of benets
to be derived from the use of the leased asset. Lease incentives
granted are recognised in the consolidated income statement as
an integral part of the aggregate net lease payments receivable.
Contingent rentals are recognised as income in the accounting
period in which they are earned.
Net nancing cost
Foreign exchange loss
Other nance expenses
Net nancing cost
2008
USD'000
776,051
194,680
970,731
2007
USD'000
30,609
168,272
198,881
Buildings
USD'000
398,497
428,187
76,138
103,267
322,358
324,920
Cost
At 31 December 2007
At 31 December 2008
Depreciation and impairment loss
At 31 December 2007
At 31 December 2008
Carrying amounts
At 31 December 2007
At 31 December 2008
Machinery,
electronic
equipment
and other
USD'000
1,059,990
1,321,018
623,107
807,744
436,883
513,274
Motor
vehicles
USD'000
52,612
55,793
31,966
31,815
20,646
23,978
Construction
in progress
USD'000
47,909
123,015
-
-
47,909
123,015
Investment
property
USD'000
59,427
63,627
20,322
28,202
39,105
35,424
Decoration
and Leasehold
improvements
USD'000
216,725
257,228
151,905
210,040
64,820
47,188
Total
USD'000
1,835,160
2,248,869
903,438
1,181,069
931,721
1,067,800
FINANCIAL REPORT 28