China Mobile Ltd. (CHL) | Analysis of Revenues

Revenue Recognition Accounting Policy

Revenue is measured at the fair value of the consideration received or receivable. Provided it is probable that the economic benefits will flow to China Mobile and the revenue and costs, if applicable, can be measured reliably, revenue is recognized in profit or loss as follows:

1. revenue derived from voice and data services are recognized when the service is rendered;
2. revenue from prepaid services is recognized when the mobile telecommunications services are delivered based upon actual usage by customers;
3. sales of SIM cards and terminals are recognized on delivery of goods to the buyer and such amount, net of cost of goods sold, is included in other net income due to its insignificance;
4. interest income is recognized as it accrues using the effective interest method; and
5. revenue from a fixed price contract is recognized using the percentage of completion method.

Source: China Mobile Ltd., Annual Report

Revenues as Reported

China Mobile Ltd., Income Statement, Revenues

	12 months ended	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007
	Voice services
	Data services
	Others
	Operating revenue (turnover)

Source: China Mobile Ltd. Annual Reports