Notes to the Condensed Consolidated Financial Statements (unaudited)
9. LEASE LIABILITY Leases are recognized as Right of Use assets and corresponding liabilities at the date at which a leased asset is available for use. Payments for short-term leases and leases of low-value assets are expensed on a straight-line basis and excluded from the lease liability.
As at December 31, 2021
As at March
(millions)
31, 2021 (audited)
$
20
Total future minimum lease payments Less: Future finance charges on leases
$
13
(1)
(1)
19
Present value of lease liability
12
(6)
Less: Current portion of lease liability
(5)
$
13
$
7
As at March
As at December 31, 2021
31, 2021 (audited)
(millions)
$
12 12
Lease liabilities, beginning of year
$
13
Net additions
6
(5)
(7)
Principal repayment of lease liability
$
19
Lease liabilities, end of year
$
12
The weighted average discount rate applied to computer leases is 4.0 per cent and vehicles is 2.8 per cent based on the rates implicit in the agreements. The weighted average discount rate applied to building leases is 4.0 per cent based on the Corporation’s incremental borrowing rate. As at December 31, 2021, scheduled future minimum lease payments and the present value of the finance lease obligation are as follows for the next five fiscal years: (millions) 2022 2023 2024 2025 2026
Future minimum lease payments Present value of lease liability
$ $
6 $ 6 $
5 $ 5 $
5 $ 4 $
3 $ 3 $
1 1
10. LONG-TERM DEBT During the first quarter, the Corporation issued $50 million in long-term debt with an interest rate of 2.8 per cent and no premium or discount.
p.26
Made with FlippingBook Ebook Creator