Changes in Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Consolidated Balance Sheet

(Extract)


	December 31, 2017 (As previously reported)		Changes in accounting policy – IFRS 9			Changes in accounting policy – IFRS 15			January 1, 2018 (As restated)



	Million		Million			Million			Million
Assets
Non-current assets
Investments accounted for using the equity method		132,499		(2,194	)		—			130,305
Deferred tax assets		33,343		24			(2,879	)		30,488
Financial assets at fair value through other comprehensive income		—		44			—			44
Available-for-sale financial assets		44		(44	)		—			—
Other non-current assets		—		—			6,469			6,469

Current assets
Contract assets		—		—			4,139			4,139
Accounts receivable		24,153		(195	)		—			23,958
Financial assets at fair value through profit or loss		—		65,630			—			65,630
Available-for-sale financial assets		65,630		(65,630	)		—			—

Equity and liabilities
Liabilities
Current liabilities
Accrued expenses and other payables		190,866		—			(782	)		190,084
Deferred revenue		85,282		—			(385	)		84,897

Equity
Reserves		583,506		(2,365	)		8,896			590,037

Consolidated Balance Sheets (Extracted)


	December 31,		Changes in
	2018		accounting			January 1,
	(As previously		policy			2019
	reported)		– IFRS 16			(As restated)
	Million		Million			Million
Assets
Non-current assets
Right-of-use assets		—		84,289			84,289
Land use rights and others		27,778		(4,665	)		23,113
Investments accounted for using the equity method		145,325		(1,216	)		144,109
Deferred tax assets		29,654		488			30,142

Current assets
Prepayments and other current assets		27,002		(1,811	)		25,191

Equity and liabilities
Liabilities
Current liabilities
Lease liabilities		—		19,917			19,917

Non-current liabilities
Lease liabilities – non-current		—		60,290			60,290
Deferred tax liabilities		822		(16	)		806
Equity
Reserves		650,275		(3,106	)		647,169

Reconciliation Between Operating Lease Commitments And Lease Liabilities

(ii)

The reconciliation between the operating lease commitments disclosed as of December 31, 2018 and the lease liabilities recognized as of January 1, 2019 is as follows:


	Note		Million
Operating lease commitments disclosed as of December 31, 2018				220,301
Discounted using the lessee’s incremental borrowing rate at the date of initial application				202,651
Less: Short-term leases and low-value leases recognized on a straight-line basis as expense				(5,827	)
Contracts reassessed as service arrangement		(i)		(90,520	)
Variable lease payments not recognized as lease liabilities		(ii)		(26,097	)

Lease liabilities recognized as of January 1, 2019				80,207

Of which:
Current portion				19,917
Non-current portion				60,290

Notes:

(i)

Contracts reassessed as service arrangement primarily comprise non-lease component of lease contracts of telecommunications towers and related assets, lines and network assets, etc..

(ii)

Variable lease payments not recognized as lease liabilities primarily comprise variable lease payments not based on an index or a rate of lease contracts of telecommunications towers and related assets.

Summary of Effects Arising from Initial Application of IFRS 15

Consolidated Statement

of Comprehensive Income

(Extract)


	2018
	As reported		Adjustments			Amounts without adoption of IFRS 15


	Million		Million			Million
Operating revenue
Revenue from telecommunications services		670,907		10,833			681,740
Revenue from sales of products and others		65,912		(5,821	)		60,091
Operating expenses
Network operation and support expenses		200,007		86			200,093
Selling expenses		60,326		6,048			66,374
Cost of products sold		66,231		847			67,078
Other operating expenses		40,775		(32	)		40,743

Consolidated Balance Sheet

(Extract)


	As of December 31, 2018
	As reported		Adjustments			Balances without adoption of IFRS 15


	Million		Million			Million
Assets
Non-current assets
Deferred tax assets		29,654		3,301			32,955
Other non-current assets		8,442		(8,442	)		—
Current assets
Contract assets		5,022		(5,022	)		—
Equity and liabilities
Liabilities
Current liabilities
Accrued expenses and other payables		195,572		68			195,640
Deferred revenue		63,185		177			63,362
Equity
Reserves		650,275		(10,408	)		639,867