Financial statements
Section B: Notes to the Group financial statements for the year ended 30 June 2024
Section B: Notes to the Group financial statements for the year ended 30 June 2024
Other
B28 Leases Leases as a lessee
The Group leases various office buildings. Rental contracts are typically made for fixed periods of 1 to 12 years but may have extension options. The majority of extension options held are exercisable only by the Group and not by the respective lessor. In determining the lease term, management consider all facts and circumstances that create an economic incentive to exercise an extension option. Right-of-use asset The Group’s right-of use assets relate to leased office buildings and are included in property, plant and equipment on the Group’s consolidated balance sheet. Right-of-use assets accounting policy Right-of-use assets have finite lives, are depreciated on a straight-line basis and are carried at cost less accumulated depreciation and accumulated impairment.
The net carrying amount of right-of-use assets is presented below:
Office buildings 2024 2023 $M $M
Carrying amount at 1 July Depreciation charge for the year
112
108
(13)
(15)
Additions
—
30
Remeasurement of lease liability
(1)
(8) (3)
Other movements
—
Carrying amount at 30 June
98
112
Lease liability Lease liabilities are included in other liabilities on the Group’s consolidated balance sheet.
2024
2023 $M $M
(18)
Current
(17)
(114) (132)
Non-current
(126) (143)
Total lease liability
Refer to Note B14 for contractual maturities for lease liabilities. Refer to Note B12 for interest expense on lease liabilities (included in finance costs). Reconciliation of lease liabilities arising from financing activities
Lease liabilities 2024 2023 $M $M
143
Balance at 1 July Interest paid on leases
131
(6)
(6)
(10) (16)
Principal repayment of leases
(10) (16)
Total cash flows
Non-cash changes Unwinding of discount
6
6
—
Additions
30
(1)
Remeasurement of lease liability Total non-cash changes
(8)
5
28
132
Balance at 30 June
143
The total cash outflow for leases in the year ended 30 June 2024 was $16 million (2023: $16 million). The Group presents lease payments as ‘principal repayments of leases’ in ‘cash flows from financing activities’ and the finance cost as ‘interest paid’ in ‘cash flows from operating activities’ within the consolidated statement of cash flows. The Group's commitments related to leases not yet commenced as at 30 June 2024 are $nil (2023: $nil).
180
179
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