Page 180 - UBP - IR2020

FINANCIAL STATEMENTS
Notes to the financial statements
For the year ended June 30 2020
2 ACCOUNTING POLICIES (CONTINUED)
2 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(p) Leases (Continued)
Policies applicable from July 01 01 2019 (continued)
The Group and the Company as lessee (continued)
Right-of-use assets are depreciated over the the shorter period of of of lease lease term and useful life of of of the the underlying asset asset If a a a a a a a a lease lease transfers ownership of of of the the the the underlying asset asset or the the the the cost of of of the the the the right-of-use asset asset reflects that the the the the Group expects to exercise a a a a a a a purchase option the the the related right-of-use asset asset is depreciated over the the the useful life of of the the the underlying asset asset The depreciation starts at at the the commencement date of the the lease The right-of-use assets are presented as as a a a a a a a a a separate line in in fin the statement of of financial position The Group applies IAS 36 Impairment of of Assets to determine whether a a a a a a a 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 not depend on an an index or rate are not not included in in in the the the measurement of the the the lease liability and the the the right-of-use asset The related payments are recognised as as an expense in in the the period in in which the the event or condition that triggers those payments occurs As a a a a a a a a a a a a practical expedient IFRS 16 permits a a a a a a a a a a a a lessee not to separate non-lease components and instead account for any lease lease and associated non-lease components as as as as a a a a a a a a a a a a single arrangement The Group has applied this practical expedient Policies applicable prior to July 01 01 2019 Leases are classified as as as as as finance leases whenever the the the terms of of the the the lease lease transfer substantially all all the the the risks and rewards of of ownership to the the lessee All other leases leases are classified as as as as operating leases leases The Group and the Company as lessee Assets held under finance leases are initially recognised as as as as assets of of the the the the Group at at their fair value at at the the the the inception of of the the the the lease lease or or or if lower at the the the the present value of the the the the minimum lease payments The corresponding liability to the the the the lessor is included in in in in the the the the statement of financial position as as a a a a a a a a finance lease obligations within the “Borrowings” line Lease payments are apportioned between finance expenses and reduction of the lease obligation so as as as to achieve a a a a a a a a a a a constant rate of of o interest on on the the remaining balance of of o the the liability Finance expenses are recognised immediately in in in in in profit or loss Contingent rentals are are recognised as expenses in in in in the the periods in in in in which they are are incurred Operating lease lease payments are recognised as as as as an an expense on a a a a a a a a a a a straight-line basis over the the lease lease terms except where another systematic basis is is more representative of the the time pattern in which economic benefits from the the leased asset are consumed The Group and the Company as lessor Rental income from operating leases is is is recognised on a a a a a a a a a straight-line basis over the the term of the the relevant lease lease Initial direct costs incurred in in in in in in negotiating and and arranging an an an an operating lease lease are added to the the carrying amount of the the leased asset and and recognised on a a a a straight-line basis over the leased term 180 - UBP INTEGRATED REPORT 2020