Page 179 - UBP - IR2020

FINANCIAL STATEMENTS
Notes to the financial statements
For the year ended June 30 2020
For these leases the the the the Group recognises the the the the lease lease payments as as as as an operating expense on a a a a a a a a a straight-line basis over the the the the term of of the the the lease unless another systematic basis is is more representative of of the the the time pattern in which economic benefits from the leased assets are consumed The lease lease liability is initially measured at at at the the the present value of the the the lease lease payments that are not paid at at at the the the commencement date discounted by using the the the rate rate implicit in in in the the the lease If this rate rate cannot be readily determined the the the lessee
uses its incremental borrowing rate Lease payments included in in the the measurement of the the lease liability comprise:
• Fixed lease lease payments payments (including in-substance fixed payments) less any lease lease incentives receivable • Variable lease payments that depend on an index index or or rate rate initially measured using the the index index or or rate rate at at at at the the commencement date • The amount expected to be payable by the lessee
under residual value guarantees • The exercise exercise price of purchase options options if the the lessee
is is is reasonably certain to exercise exercise the the options options and • Payments of of penalties for terminating the the the the lease lease if the the the the lease lease term term term reflects the the the the exercise of of an option to terminate the the the the lease The lease liability is presented within “Borrowings” line in in in in fin the statement of financial position The lease lease liability liability is subsequently measured by increasing the the carrying amount to reflect interest on the the lease lease liability liability (using the the the effective interest method) and by reducing the the the carrying amount to reflect the the the lease payments made The Group remeasures the the lease liability (and makes a a a a a a a a a corresponding adjustment to the the related right-of-use asset) whenever:
• The lease term has changed or or there is a a a a a a a a a significant event or or change change change in in in in circumstances resulting in in in in a a a a a a a a a change change change in in in in the the assessment of of exercise of of a a a a a a a purchase option in in which case the the lease liability is is is is remeasured by discounting the the revised lease payments using a a a a revised discount rate • The lease payments change change change due to changes in in in an an an an an index or or rate or or a a a a a a a a a a a a change change change in in in expected payment payment under a a a a a a a a a a a a guaranteed residual value in in in which cases the the lease lease liability is is is remeasured by discounting the the revised lease lease payments using an unchanged discount rate rate (unless the lease payments change change change is is due to a a a a a a a a a a a change change change in in in in a a a a a a a a a a a floating interest rate rate in in in in which case a a revised discount rate is is is used) • A lease lease lease lease contract is is modified and the the lease lease lease lease modification is is not accounted for as as as as as as a a a a a a a a a a a a a separate lease lease lease lease in which case the the lease lease lease lease liability is is is remeasured based on the the the lease lease lease term of the the the modified lease lease lease by discounting the the the revised lease lease lease payments using a a a a a a a a revised discount rate at at at at the the effective date of the the modification The Group did not make any such adjustments during the periods presented The right-of-use assets comprise the the initial measurement of of the the corresponding lease lease liability lease lease payments made at or or before the commencement day less any any lease incentives received and any any initial direct costs They are subsequently measured at at at cost less accumulated depreciation and impairment losses Whenever the the Group incurs an an an obligation for costs to to dismantle and remove a a a a a a a leased asset restore the the site on on which it it is is located or or restore the the the the underlying asset to to the the the the condition condition required by the the the the terms and conditions of the the the the lease a a a a a provision is is recognised and measured under IAS 37 To the the the extent that the the the costs costs relate to a a a a a a a right-of-use asset the the the costs costs are included in in the related right-of-use asset unless those costs are incurred to to produce inventories UBP INTEGRATED REPORT 2020
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FINANCIAL CAPITAL CORPORATE MANAGEMENT STATEMENTS
REPORTS GOVERNANCE APPROACH
ABOUT US INTRODUCTION