Founded in 1987, Huawei is a leading global provider of information and communications

(iv) Research and development
Research and development costs are all 
costs directly attributable to research and 
development activities together with cost 
which can be allocated on a reasonable basis 
to such activities. The nature of the Group’s 
research and development activities is such 
that the criteria for the recognition of such 
costs as assets are generally not met until 
late in the development stage of the project 
when the remaining development costs are 
immaterial. Therefore, expenditure on research 
and development activities is generally 
recognised as an expense in the period in 
which it is incurred.
(i) Leases
A contract is, or contains, a lease if the 
contract conveys the right to control the use 
of an identified asset for a period of time, 
the lease term, in exchange for consideration. 
The Group assesses whether a contract is, or 
contains, a lease on inception.
The lease term is the non-cancellable period 
of the lease, together with any additional 
periods when there is an enforceable option to 
extend the lease and it is reasonably certain 
that the Group will extend the term, or when 
there is an option to terminate the lease and 
it is reasonably certain that the Group will not 
exercise the right to terminate. The lease term 
is reassessed if there is a significant change in 
circumstances.