NOTES TO THE FINANCIAL STATEMENTS
17. Operating leases://
2017 $000
2016 $000
Aggregate minimum lease payments under non-cancellable operating leases where Vector is the lessee Within one year
5,732
5,018
One to five years Beyond five years
13,431
14,126
5,205
5,219
Total
24,368
24,363
Policies
Payments made under operating leases, where the lessors effectively retain the risks and benefits of ownership, are recognised in profit or loss on a straight-line basis over the lease term. Lease incentives received are recognised as an integral part of the total lease expense over the term of the lease.
Lease of premises
The majority of the operating lease commitments relate to the group’s leases of premises. These, in the main, give the group the right to renew the lease at the end of the current lease term.
NZ IFRS 16 Leases NZ IFRS 16 will replace all existing guidance on leases, in particular NZ IAS 17 Leases and NZ IFRIC 4 Determining Whether an Arrangement Contains a Lease . Under NZ IFRS 16, an entity’s right to control the use of an asset (analogous to an operating lease under NZ IAS 17) meets the definition of, and is recognised as, an asset on the balance sheet. A lease liability reflecting future lease payments is also recognised. Vector is a lessee in predominantly property and land leases. Total non-cancellable operating lease commitments total $24.4 million at 30 June 2017. We expect to provide a more detailed update on our evaluation of the financial impact of NZ IFRS 16 in our 2018 interim financial statements. NZ IFRS 16 is mandatory for the group’s financial year ended 30 June 2020 with early adoption permitted if NZ IFRS 15 is also adopted.
New accounting standards not yet adopted
18. Trade and other payables://
2017 $000
2016 $000
Current Trade payables
164,034 10,401 15,934 25,452
134,320 12,383 14,488 22,618
Deferred payables Employee benefits Deferred income Finance leases Interest payable Balance at 30 June Non-current Deferred income Deferred payables
434
238
33,665 249,920
38,943 222,990
10,548 29,992
12,188 28,394
Finance leases
371 500
413
Other non-current payables
2,798
Balance at 30 June
41,411
43,793
Other payables
Vector accrues employee benefits which remain unused at balance date, and amounts expected to be paid under short-term cash bonus plans. Deferred income includes third party contributions received in excess of those recognised in profit or loss. Deferred payables include third party rebates payable in excess of those paid in cash.
100
Vector://AR 17
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