22. Right-of-use assets

SELECTED ACCOUNTING PRINCIPLESAn agreement or part of a rental, lease or other agreement or part of an agreement of a similar nature under which the right to control the use of an assets for a given period is transferred in exchange for remuneration is classified as a lease. Lease classification is made at the date of commencement of the lease, based on the economic content of the agreement, not on its legal form.

At the date of commencement of the lease, a right-of-use assets is recognised for use and a liability for the lease.

A right-of-use asset is measured at cost including:

  • the amount of the initial measurement of the lease liability,
  • all lease payments made at or before the inception of the lease, less any amounts received in respect of the lease or costs paid by the lessor (lease incentives),
  • any initial direct costs incurred by the lessee,
  • an estimate of the costs of dismantling and removing the underlying asset, restoring the site on which it was located, or restoring it to the condition required by the lease terms.

After the initial recognition, a right-of-use asset is measured at cost less accumulated depreciation and/or amortization and impairment write-down and adjusted for the revaluation of the lease liability. Depreciation and/or amortisation principles applied to assets used under leases are consistent with those applied to depreciation and/or amortisation of assets owned by the Group. If there is no reasonable certainty that the Group will obtain ownership by the end of the lease term the asset item is fully depreciated over the shorter of the lease term and its useful life.

PROFESSIONAL JUDGEMENT AND ESTIMATES

At the date of commencement of the lease, the Group measures an rights-of-use assets including in the current value of the lease payments remaining to be paid on that date. Lease payments are discounted using the interest rate of the lease if that rate can be easily determined. Otherwise, the Group applies the incremental borrowing rate, in accordance with the adopted methodology depending on the rating.

The Group applies the portfolio approach to similar leases regarding unified assets with similar use. When accounting for leases under the portfolio approach, the Group applies estimates and assumptions corresponding to the size and composition of the portfolio, including estimates of the weighted average lease term.

In order to determine the lease period, e.g. for contracts for an indefinite period, the Group makes an estimate.

Year ended 31 December 2020

Export to Excel
Land Perpetual
usufruct right
Buildings,
premises and
civil
engineering
structures
Plant and
machinery
Motor
vehicles
Transmission
easements
Right-of-use
assets in
progress
Right-of-use
assets
total
COST

Opening balance

475,863 1,076,085 176,424 64,789 6,571 121,144 6,256 1,927,132
Increase due to a new lease contract 54,438 447 11,699 30,755 98 361 97,798
Increase(decrease) due to lease changes 3,239 77, 921 9,374 (1,397) (34) 31 89,134
Transfer of assets held for sale (13,081) (96,590) (21,340) (282) (4,196) (135,489)
Other movements 14,169 (645) (972) (5,568) 1,034 11,088 (492) 18,614
Closing balance 534,628 1,057,218 175,185 88,579 7,387 128,428 5 764 1,997,189
ACCUMULATED DEPRECIATION

Opening balance

(20,176) (60,097) (15,341) (34,713) (2,210) (21,097) (153,634)
Depreciation for the period (25,071) (32,813)
Increase of impairment (1,245) (20) (13,775) (41) (2,402) (17,483)
Decrease of impairment 10,913 10,913
Transfer of assets held for sale 890 (7,360) 2,240 115 708 (3,407)
Other movements 761 1,030 347 5,514 (341) 11 7,322
Closing balance (43,596) (89,572) (28,827) (62,305) (5,345) (28,618) (258,263)
NET CARRYING AMOUNT AT THE BEGINNING OF THE PERIOD 455,687 1,015,988 161,083 30,076 4,361 100,047 6,256 1,773,498
NET CARRYING AMOUNT AT THE END OF THE PERIOD 491,032 967,646 146,358 26,274 2,042 99,810 5,764 1,738,926

Year ended 31 December 2019

Export to Excel
Land Perpetual
usufruct right
Buildings,
premises and
civil
engineering
structures
Plant and
machinery
Motor
vehicles
Transmission
easements
Right-of-use
assets in
progress
Right-of-use
assets,
total
COST  

Opening balance

Impact of IFRS 16 393,110 1,071,236 166,028 28,978 3,739 96,489 12,931 1,772,511
Restated opening balance 393,110 1,071,236 166,028 28,978 3,739 96,489 12,931 1,772,511
Increase due to a new lease contract 40,384 9 4,478 36,674 2,569 360 84,474
Increase/(decrease) due to lease changes 8,547 2,287 5,274 (863) 397 (12) 15,630
Business acquisition 34,931 1,199 33 36,163
Other movements (1,109) 2,553 (555) (134) 24,274 (6,675) 18,354
Closing balance 475,863 1,076,085 176,424 64,789 6,571 121,144 6,256 1,927,132
ACCUMULATED DEPRECIATION

Opening balance

Impact of IFRS 16 (25,384) (15,987) (41,371)
Restated opening balance (25,384) (15,987) (41,371)
Depreciation for the period (20,229) (32,435) (15,334) (17,828) (2,112) (5,111) (93,049)
Increase of impairment (3,080) (48) (16,885) (124) (20,137)
Decrease of impairment 460 460
Other movements 53 342 41 26 1 463
Closing balance (20,176) (60,097) (15,341) (34,713) (2,210) (20,097) (153,634)
NET CARRYING AMOUNT AT THE BEGINNING OF THE PERIOD
NET CARRYING AMOUNT AT THE END OF THE PERIOD 455,687 1,015,988 161,083 30,076 4,361 100,047 6,256 1,773,498