| 8. | PROPERTY, PLANT AND EQUIPMENT, NET |
| Buildings and improvements |
Telecommunications network plant and equipment |
Furniture, fixture, motor vehicles and other equipment |
Total | |||||||||||||
| RMB | RMB | RMB | RMB | |||||||||||||
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Cost/Deemed cost: |
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Balance at January 1, 2016, as previously reported |
97,459 | 819,257 | 29,607 | 946,323 | ||||||||||||
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Adjusted for the Eighth Acquisition (Note 1) |
— | 61 | 3 | 64 | ||||||||||||
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Balance at January 1, 2016, as restated |
97,459 | 819,318 | 29,610 | 946,387 | ||||||||||||
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Additions |
664 | 1,335 | 480 | 2,479 | ||||||||||||
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Transferred from construction in progress |
2,053 | 78,287 | 1,739 | 82,079 | ||||||||||||
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Disposals |
(754 | ) | (74,976 | ) | (1,753 | ) | (77,483 | ) | ||||||||
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Disposal of a subsidiary |
— | — | (3 | ) | (3 | ) | ||||||||||
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Reclassification |
87 | (128 | ) | 41 | — | |||||||||||
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Balance at December 31, 2016, as restated |
99,509 | 823,836 | 30,114 | 953,459 | ||||||||||||
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Additions |
583 | 532 | 410 | 1,525 | ||||||||||||
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Transferred from construction in progress |
1,967 | 87,129 | 1,707 | 90,803 | ||||||||||||
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Disposals |
(709 | ) | (68,719 | ) | (1,936 | ) | (71,364 | ) | ||||||||
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Disposal of a subsidiary |
— | (33 | ) | — | (33 | ) | ||||||||||
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Reclassification |
(18 | ) | (272 | ) | 290 | — | ||||||||||
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Balance at December 31, 2017 |
101,332 | 842,473 | 30,585 | 974,390 | ||||||||||||
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Accumulated depreciation and impairment: |
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Balance at January 1, 2016, as previously reported |
(47,102 | ) | (504,015 | ) | (21,225 | ) | (572,342 | ) | ||||||||
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Adjusted for the Eighth Acquisition (Note 1) |
— | (39 | ) | (2 | ) | (41 | ) | |||||||||
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Balance at January 1,2016, as restated |
(47,102 | ) | (504,054 | ) | (21,227 | ) | (572,383 | ) | ||||||||
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Depreciation and impairment charge for the year |
(4,527 | ) | (56,956 | ) | (2,267 | ) | (63,750 | ) | ||||||||
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Written back on disposals |
681 | 70,010 | 1,652 | 72,343 | ||||||||||||
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Disposal of a subsidiary |
— | — | 2 | 2 | ||||||||||||
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Reclassification |
(70 | ) | 83 | (13 | ) | — | ||||||||||
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Balance at December 31, 2016, as restated |
(51,018 | ) | (490,917 | ) | (21,853 | ) | (563,788 | ) | ||||||||
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Depreciation and impairment charge for the year |
(4,326 | ) | (63,903 | ) | (2,145 | ) | (70,374 | ) | ||||||||
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Written back on disposal |
620 | 63,553 | 1,839 | 66,012 | ||||||||||||
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Disposal of a subsidiary |
— | 17 | — | 17 | ||||||||||||
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Reclassification |
18 | 184 | (202 | ) | — | |||||||||||
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Balance at December 31, 2017 |
(54,706 | ) | (491,066 | ) | (22,361 | ) | (568,133 | ) | ||||||||
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Net book value at December 31, 2017 |
46,626 | 351,407 | 8,224 | 406,257 | ||||||||||||
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Net book value at December 31, 2016, as restated |
48,491 | 332,919 | 8,261 | 389,671 | ||||||||||||
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In order to expedite the construction of the new generation network and create state-of-the-art network experience, the Group resolved to accelerate the upgrade and replacement of corporate information system equipment, IPTV equipment and CDN equipment in order to promote the long-term sustainable development of the Group.
During the year, after reviewing the current condition of existing network equipment and assessing the impact of the evolution in telecommunications technologies and the business development needs, the Company considered the estimated useful lives of corporate information system equipment, IPTV equipment and CDN equipment would change from previously anticipated. As a result, the Group changed the estimated depreciable lives of such equipment from 10 years to 5 years, which could more accurately and appropriately reflect the changes in the Group’s expected consumption pattern of economic benefits embodied in these assets.
The changes in accounting estimates are implemented with effect from October 1, 2017. Effect of changes in depreciable lives is estimated to increase depreciation expense by approximately RMB4,045 for the year ended December 31, 2017. The effect of such changes in depreciable lives represents a temporary difference, therefore does not have any effect on the total depreciation expenses of those assets during the assets’ lives.