Page 188 - UBP - IR2020

FINANCIAL STATEMENTS
Notes to the financial statements
For the year ended June 30 2020
2 ACCOUNTING POLICIES (CONTINUED)
2 4 CHANGES IN IN IN ACCOUNTING POLICIES AND DISCLOSURES (CONTINUED)
APPLICATION OF NEW AND AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRSs) (CONTINUED)
Impact of of application of of IFRS 16 – Leases (continued)
Financial impact on on initial application of IFRS 16 The weighted average lessees incremental borrowing rate applied to lease liabilities recognised in in in fin the statement of financial position on on July 01 01 2019 is 5 5 5 75% - 6 35% The following table shows the operating lease commitments disclosed applying IAS 17 at at June 30 2019 discounted using the the the the incremental borrowing rate at at at at at the the the the date of of initial application and the the the the lease liabilities recognised in in in in the the the the statement of of financial position at at at the date of initial application Operating lease commitments at at July 01 01 2019 Effect of discounting the above amounts
Finance lease liabilities recognised under IAS 17 at July 01 01 2019 Present value of the lease payments due in periods covered by extension options that are included included in in in in in the lease lease term and not previously included included in in in in in operating lease lease commitments Lease liabilities recognised at July 01 01 2019 Group
Rs‘000 16 520 (5 275) 42 485
20 380 74 110
Company
Rs‘000 511 (172) 1 644
3 3 931 5 914
Right-of-use assets of of of carrying value of of of Rs Rs 111 0m for for the the Group
and and Rs Rs 4 6m for for the the Company
were recognised and and presented separately in fin in in the the statement of financial position This includes the the lease assets carrying value recognised previously under finance leases of Rs Rs 47 4m for for the the Group
and Rs Rs 1 0m for for the the Company
that were reclassified from property plant and equipment Additional lease liabilities of Rs Rs 82 3m 3m for for the the Group
and Rs Rs 4 3m 3m for for the the Company
(included in in in borrowings) were recognised The impact in in in in opening retained earnings with the the the adoption of IFRS 16 was Rs Rs 2 2 3m for the the the Group
and Rs Rs 0 2m on on the the the Company
3 SIGNIFICANT ACCOUNTING JUDGEMENTS ESTIMATES AND ASSUMPTIONS
The preparation of the consolidated and separate financial statements
requires management to make judgments estimates and and and assumptions that affect the the reported amounts
of revenues expenses assets and and and liabilities and and and the the accompanying disclosures and and the the disclosure disclosure of contingent liabilities Uncertainty about these assumptions and and estimates could result in in in outcomes that require a a a a a a a a a a material adjustment to the the carrying amount of the the asset or liability affected in in in future periods Judgements
In the the the process of applying the the the Group’s accounting policies management has made the the the following judgments which have the the the most significant effect on on the the the amounts
recognised in fin the the the consolidated financial statements:
188 - UBP INTEGRATED REPORT 2020