Notes to the consolidated financial statements For the year ended 30 June 2024
21. Cash and cash equivalents
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term. Additionally, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of the lease liability. If the Group revises its estimate of the term of any lease, it will adjust the carrying amount of the lease liability to reflect the payments to be made over the revised term, discounted at the revised discount rate. An equivalent adjustment is made to the carrying value of the right-of-use asset, with the revised carrying amount being amortised over the remaining (revised) lease term.
Cash and cash equivalents are distributed across a range of financial institutions with high credit ratings in accordance with the Group’s treasury policy. Cash at bank comprises current accounts and immediately accessible deposit accounts.
22. Lease liabilities
Cars £’000
Property £’000
Total £’000 6,027
At 1 July 2022
292 470
5,735
Additions
713
1,183
Payments made
(169)
(2,135)
(2,304)
Finance cost of lease liabilities
18
217
235
At 30 June 2023
611
4,530 1,157
5,141 1,331
174
Additions
(142) (225)
(175)
(317)
Adjustment on change of lease terms
(2,311)
(2,536)
Payments made
21
174
195
Finance cost of lease liabilities
At 30 June 2024
439
3,375
3,814
Analysed as: Amounts falling due within one year
194 245 439
1,975 1,400 3,375
2,169 1,645 3,814
Amounts falling due after more than one year
Total lease liabilities
The Group offers a car leasing arrangement to provide a salary sacrifice car leasing scheme for employees. Each vehicle leased to individual employees creates a separate right-of-use asset (Note 15) and lease liability measured at present value of the remaining lease payments, discounted using the lessee’s estimated incremental borrowing rate. The Group is party to leases as lessee in relation to property agreements for the use of office space. All leases are accounted for by recognising a right-of-use asset and a lease liability at the lease commencement data. Lease liabilities are initially measured at the present value of the contractual payments due to the lessor over the lease term, with the discount rate determined by reference to the rate implicit in the lease. Right-of-use assets are initially measured at the amount of the lease liability, reduced for any lease incentives received, and increased for lease payments made at or before commencement of the lease, initial direct costs incurred and the amount of any provision recognised where the Group is required to dismantle, remove or restore the asset. Additionally, they may be re- measured to reflect reassessment due to lease modifications.
146 Brooks Macdonald Group plc Annual Report and Accounts 2024
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