Page 187 - UBP - IR2020

FINANCIAL STATEMENTS
Notes to the financial statements
For the year ended June 30 2020
Lease incentives (e g g g rent free period) are recognised as as as as as part of of of the the measurement of of of the the right-of-use assets and lease liabilities whereas under IAS 17 they resulted in in the the recognition of of a a a a a a a a lease incentive amortised as as as a a a a a a a a reduction of of rental expenses on a a a straight line basis Under IFRS 16 right-of-use assets are tested for impairment in accordance with IAS 36 Impairment of of Assets For short term term leases leases (lease term term of of 12 months or or or less) and and leases leases of of low value assets the the Group and and the the Company can opt to recognise a a a a a a a a lease expense on a a a a a a a a straight-line basis in in profit or loss as as as permitted by IFRS 16 The Group and the Company did not have any short term leases leases or or low value assets leases leases The Group and Company have used the the following practical expedients when applying the the cumulative catch-up approach to leases leases previously classified as as as as operating leases leases applying IAS 17 • The Group and the Company have applied a a a a a a a a a a a single discount rate to a a a a a a a a a a a portfolio of leases with reasonably similar characteristics • The Group and and the Company have elected not to to recognise right-of-use assets and and lease lease liabilities to to leases for which the the lease terminates within 12 months of of the the date of of initial application • The Group and the the the the Company has excluded initial direct costs from the the the the measurement of of the the the the right-of-use asset at the the the the date of initial application • The Group and the the the Company has used hindsight when when determining the the the lease term term when when the the the contract contains options to extend or terminate the lease ii) Former finance leases For leases leases that were classified as as as as as as finance leases leases applying IAS 17 the the carrying amount of the the leased assets and obligations under finance leases measured applying IAS 17 immediately before the date of of initial application is reclassified to right-of- use assets and and lease liabilities respectively without any any adjustments except in cases where the the Group and and the the Company have elected to apply the low-value lease recognition exemption The right-of-use asset and the lease liability are accounted for applying IFRS 16 as as as from July 01 01 2019 Impact on Lessor Accounting
IFRS IFRS 16 16 does not change substantially how a a a a a a a a a lessor lessor accounts for leases leases Under IFRS IFRS 16 16 a a a a a a a a a lessor lessor continues to classify leases leases as as as as either finance leases leases leases or or operating leases leases leases and account for those two types of leases leases leases differently However IFRS 16 has changed and and expanded the the disclosures required in in particular regarding how a a a a a a a a a a lessor manages the the risks arising from its residual interest in in in leased assets Under IFRS 16 an an intermediate lessor accounts for the the head lease lease and the the sublease as as as two separate contracts The intermediate lessor is required to to classify the the sublease as as as as as a a a a a a a a a finance or or operating lease lease by reference to to the the right-of-use asset arising from the the the head lease (and not by reference to the the the underlying asset as as as as as was the the the case under under IAS 17) No adjustment was required in in in in respect of of lessor accounting following the initial application of of IFRS 16 UBP INTEGRATED REPORT 2020
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FINANCIAL CAPITAL CORPORATE MANAGEMENT STATEMENTS
REPORTS GOVERNANCE APPROACH
ABOUT US INTRODUCTION