Page 166 - Amata-one-report2020-en

Right-of-use assets

Right-of-use assets are measured at cost, less accumulated depreciation, any accumulated

impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of
right-of-use assets includes the amount of lease liabilities initially recognised, initial direct
costs incurred, and lease payments made at or before the commencement date of the lease

less any lease incentives received (if any).

Depreciation of right-of-use assets are calculated by reference to their costs [or the revalued
amount], on the straight-line basis over the shorter of their estimated useful lives and
the lease term.

Land 12 - 50 years
Buildings 26 years

Motor vehicles 2 - 5 years

If ownership of the leased asset is transferred to the Group at the end of the lease term or
the cost reflects the exercise of a purchase option, depreciation is calculated using
the estimated useful life of the asset.

Right-of-use assets which are classified as investment properties are presented as part of
investment properties in the statement of financial position.

Lease liabilities

Lease liabilities are measured at the present value of the lease payments to be made over
the lease term. The lease payments include fixed payments less any lease incentives
receivable, variable lease payments that depend on an index or a rate, and amounts expected

to be payable under residual value guarantees. Moreover, the lease payments include the
exercise price of a purchase option reasonably certain to be exercised by the Group and

payments of penalties for terminating the lease, if the lease term reflects the Group exercising
an option to terminate. Variable lease payments that do not depend on an index or a rate are
recognised as expenses in the period in which the event or condition that triggers the payment
occurs.

The Group discounted the present value of the lease payments by the interest rate implicit in

the lease or the Group’s incremental borrowing rate. After the commencement date,
the amount of lease liabilities is increased to reflect the accretion of interest and reduced for
the lease payments made. In addition, the carrying amount of lease liabilities is remeasured

if there is a change in the lease term, a change in the lease payments or a change in
the assessment of an option to purchase the underlying asset.

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