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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