Vector Annual Report 2019

15. Leases 15.1 Right of use assets

LAND, BUILDINGS AND IMPROVE­ MENTS $M

OTHER PLANT AND EQUIPMENT $M

TOTAL $M

Opening net book value 1 July 2018

39.4

0.7 3.7

40.1

Movements on transition

2.1

5.8

Additions

(6.8)

(1.0)

(7.8)

Depreciation for the period Carrying amount 30 June 2019

34.7 41.5

3.4 4.4

38.1 45.9

Cost

(6.8)

(1.0)

(7.8)

Accumulated amortisation

15.2 Lease liabilities maturity analysis

MINIMUM LEASE PAYMENTS $M

PRESENT VALUE $M

INTEREST $M

9.0

(1.8) (4.6) (5.6)

7.2

Within one year One to five years Beyond five years

23.2 19.7 51.9

18.6 14.1 39.9

Total

(12.0)

7.2

Current portion

32.7 39.9

Non-current portion

Total

15.3 Lease expenses included in profit or loss

2019 $M

0.3 2.0

Short-term leases Interest on leases

15.4 Lease cashflows included in cashflow statement

2019 $M

8.4

Total cash outflow in relation to leases

Policies

Lease liabilities are measured at the present value of remaining lease payments, discounted at the group’s incremental borrowing rate as at 1 July 2018. The weighted-average rate applied is 4.7%. Right of use (ROU) assets are initially recognised at cost, comprising the initial amount of the lease liability less any unamortised lease incentives. ROU assets are subsequently depreciated using the straight-line method from the commencement date to the end of the lease term. In considering the lease term, the group applies judgment in determining whether it is reasonably certain that an extension or termination option will be exercised. The majority of the group’s leases are property leases. These, in the main, give the group the right to renew the leases at the end of their lease terms.

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