Commitments

12 Months Ended

Dec. 31, 2019

37	COMMITMENTS

(a)

Capital commitments

The Group’s capital expenditure contracted for as of December 31 but not provided in the consolidated financial statements were as follows:


	2019		2018
	Million		Million
Land and buildings		7,430		9,327
Telecommunications equipment and others		34,463		44,174

		41,893		53,501

(b)

Operating lease commitments

The Group leases certain land and buildings, leased lines and network assets, motor vehicles, computer and other office equipment.

From January 1, 2019, in accordance with IFRS 16, the Group has recognized

right-of-use

assets for these leases, except for short-term leases, leases of

low-value

assets, variable payment leases which are recorded in profit or loss as incurred and contracts reassessed as service arrangements, see note 3(

) and note 16 for further information.

The portfolio of the majority short-term leases which were committed by the Group as of December 31, 2019 was similar to the portfolio of short-term leases which were recorded in the profit or loss as incurred during 2019. Therefore, there is no need to disclose short-term lease commitments separately.

The total future minimum lease payments under

non-cancellable

operating leases as of December 31, 2018 were as follows:


	Land and buildings		Leased lines and network assets		Others		Total
	Million		Million		Million		Million
As of December 31, 2018
Within one year		10,067		44,867		1,402		56,336
After one year but within five years		24,843		123,088		1,324		149,255
After five years		11,165		3,464		81		14,710

		46,075		171,419		2,807		220,301

(c)

Investment commitments

The Group has an investment commitment to a joint venture (see note 21).