Huawei 2012 Annual Report Download - page 63

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Consolidated Financial Statements Summary and Notes 60
Investment properties
The Group is engaged in the manufacturing, sales
and marketing of telecommunications equipment
and the provision of related services. The Group
leased certain buildings to an ex-subsidiary, an ex-
associate and other third parties. Such buildings
are classified as investment properties.
The carrying value of investment properties as
of December 31, 2012 is CNY149,274,000 (2011:
CNY278,153,000). The fair value of investment
properties as of December 31, 2012 is estimated
by the directors to be CNY273,496,000 (2011:
CNY478,684,000). The fair value is calculated by
management based on the discounted cash flow
analysis.
The fair value of investment property is determined
by the Group internally by reference to market
conditions and discounted cash flow forecasts.
The Group’s current lease agreements, which were
entered into on an arm’s-length basis, were taken
into account.