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

(iv) Impairment losses of long-lived assets
The carrying amounts of long-lived assets 
(including goodwill) are reviewed periodically 
in order to assess whether the recoverable 
amounts have declined below their carrying 
amounts. In order to determine the recoverable 
amount, the Group uses assumptions and 
develops expectations, which requires 
significant judgement. The Group uses all 
readily available information in determining an 
amount that is a reasonable approximation of 
recoverable amount, including estimates based 
on reasonable and supportable assumptions 
and projections of production volume, sales 
price, amount of operating costs, discount rate 
and growth rate.
(v) Income  tax
The Group is subject to income taxes in 
various jurisdictions. Significant judgement is 
required in determining the Group’s provision 
for income taxes. There are many transactions 
and computations for which the ultimate tax 
determination is uncertain during the ordinary 
course of business. The Group recognises 
liabilities in relevant accounting period based 
on estimates of the probabilities of whether 
additional taxes will be due. Where the final 
tax outcome of these matters is different from 
the amounts that were initially recorded, such 
differences will impact current and deferred tax 
liabilities and the taxation charge for the year.

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Huawei Investment & Holding Co., Ltd.