At
the
commencement
date,
the
right-of-use
assets
are
measured
at
cost
and
consist
of
the
following:
•
the amount of the initial measurement of the lease liability,
•
any
lease
payments
made
at
or
before
the
commencement
date,
less
any
lease
incentives received,
•
any initial direct cost incurred by the lessee,
•
an
estimate
of
costs
of
dismantling,
removing
and
restoring
the
underlying
asset
and/or the site where it is located.
After
the
commencement
date,
the
right-of-use
assets
are
measured
at
cost
less
accumulated
depreciation,
accumulated
impairment
losses
and
adjusted
for
remeasurement
of
the
lease
liability
resulting
from
reassessment
or
lease
modification
which
does
not
require
recognition
of a separate lease component.
Right-of-use
assets
are
depreciated
on
a
straight-line
basis
over
the
shorter
of:
the
term
of
the
lease
agreement
or
the
useful
life
of
the
underlying
asset.
If
the
Company
is
reasonably
certain
that
ownership
of
the
underlying
asset
will
be
transferred
to
the
lessee
by
the
end
of
the
lease
term
–
then
the
right-of-use
asset
shall
be
depreciated
from
the
commencement
date
to
the
end of its useful life.
The Company depreciates the right-of-use assets as follows:
•
office space and other premises: 3-13 years,
•
points of sale premises: 2 years,
•
vehicles: 4-5 years.
Right-of-use
assets
are
subject
to
impairment
based
on
the
accounting
policies
as
presented
in note 5m.
At
the
commencement
date,
the
lease
payments
included
in
the
measurement
of
the
lease
liability
comprise
the
following
payments
for
the
right
to
use
the
underlying
asset
during
the
lease term that are not paid at the commencement date:
•
fixed
payments
(including
in-substance
fixed
payments),
less
any
lease
incentives
receivable,
•
variable
lease
payments
that
depend
on
an
index
or
a
rate,
initially
measured
using
the index or rate as at the commencement date,
•
the
exercise
price
of
purchase
option
if
the
lessee
is
reasonably
certain
to
exercise
that option,
•
payments
of
penalties
for
early
terminating
the
lease
(understood
as
any
economic
factors
discouraging
the
Company
from
terminating
the
contract),
if
the
lease
term
reflects that the lessee will exercise the option to terminate the lease,
•
amounts expected to be payable by the lessee under residual value guarantees.
Lease
payments
are
discounted
using
the
interest
rate
implicit
in
the
lease,
if
that
rate
can
be
readily determined. Otherwise the lessee’s incremental borrowing rate is used.
After the commencement date, the Company measures the lease liability by:
•
increasing the carrying amount to reflect interest expense on the lease liability;
•
reducing the carrying amount to reflect the lease payments made;
•
remeasuring
the
carrying
amount
to
reflect
any
reassessment
or
lease
modifications,
e.g. change in the lease term or the amount of future lease payments.
Interest
expenses
on
lease
liabilities
are
recognized
in
profit
or
loss
over
the
term
of
the
lease.
