Page 146 - annual report AUCT 2025_Eng

Business Operation and Operating Results Corporate Governance Financial Statements Attachments
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 Company and payments of penalties for terminating
the lease, if the lease term reflects the Company 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 Company discounted the present value of the lease payments by the interest rate implicit in the
lease or the Company’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.
Short-term leases and leases of low-value assets
A lease that has a lease term less than or equal to 12 months from commencement date or a lease
of low-value assets is recognised as expenses on a straight-line basis over the lease term.
4.6 Related party transactions
Related parties comprise individuals or enterprises that control, or are controlled by, the Company,
whether directly or indirectly, or which are under common control with the Company.
They also include associates, and individuals or enterprises which directly or indirectly own a voting
interest in the Company that gives them significant influence over the Company, key management
personnel, directors, and officers with authority in the planning and direction of the Company’s
operations.
4.7 Impairment of non-financial assets
At the end of each reporting period, the Company performs impairment reviews in respect of the
leasehold improvements, buildings and equipment, right-of-use assets and other intangible assets
whenever events or changes in circumstances indicate that an asset may be impaired. An impairment
146
Annual Registration Statement / Annual Report 2025
(Form 56-1 One Report)