Page 181 - Thailand Post Annual Report 2024

Part 1
Overview of the Organization
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Part 2
Business Trends
Part 3
Business Model
Part 4
Strategies and Resource Allocation
Part 5
Risk
Part 6
Corporate Governance
Part 7
Operating Results
Part 8
Other Information
A lease contract is modified and the lease modification is not accounted for as a separate lease, in this case the lease liability is remeasured based on the lease term of the modified lease by discounting the revised lease payments using a revised discount rate at the effective date of the modification.
The Group did not make any such adjustments during the year.
The right-of-use assets comprise the initial measurement with the corresponding lease liability, lease payments made at or before the starting date of the lease contract, less any lease incentives received and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and accumulated impairment losses.
Whenever the Group incurs an obligation for costs of dismantling and removing a leased asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease, a provision is recognized and measured under TAS 37 (Provisions, Contingent Liabilities and Contingent Assets). Costs related to right-of-use assets are recognized as part of the related right-of-use asset, unless those costs are incurred to produce inventories.
Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group expects to exercise a purchase option, the related right-of-use is depreciated over the useful life of the underlying asset. The depreciation starts at the the starting date of the lease contract.
The right-of-use assets are presented in a separate line in the consolidated and separate statements of financial position.
The Group applies TAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in the “Property, Plant and Equipment” policy.
Variable rents that do not depend on an index or rate are not included in the measurement of the lease liability and the right-of-use asset. The related payments are recognized as an expense in the period in which the event or condition that triggers those payments occurs and are included in statement of profit or loss.
The Group as Lessor
Operating Lease
Long-term lease of assets in which the majority of risks and returns of ownership belong to the lessor will be considered as the operating lease. Any payment to be made under the operating lease (net of incentive obtained from the lessor) will be recoded as expenses in the statement of profit or loss with the straight-line method throughout the term of such lease.
Expenses arising from the termination of an operating lease prior to the expiration of the lease, such as penalties to be paid to the lessor, will be recorded as an expense in the accounting period in which the cancellation occurred.
Annual Report 2024 179