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NOTES (continued)
S ar o significant acco nting po icies contin ed 2.8 Dividend income
Dividend income is reco nised when the ri ht to receive income is esta lished.
eases acco nting po icies app ied nti Dece ber
eases in which a si nificant portion o the ris s and rewards o ownership are retained y the lessor are classified as operatin leases. Payments made under operatin leases net o any incentives received rom the lessor are char ed to the income statement on a strai ht line asis over the period o the lease.
he Group leases certain property, plant and e uipment. eases o property, plant and e uipment where the Group has su stantially all the ris s and rewards o ownership are classified as finance leases. inance leases are capitalised at the lease’s commencement at the lower o the air value o the leased property and the present value o the minimum lease payments.
Each lease payment is allocated etween the lia ility and finance char es. he correspondin rental o li ations, net o finance char es, are included in other lon term paya les. he interest element o the finance cost is char ed to the income statement over the lease period so as to produce a constant periodic rate o interest on the remainin alance o the lia ility or each period. he property, plant and e uipment ac uired under finance leases is depreciated over the shorter o the use ul li e o the asset and the lease term.
A O O ES A ED S E A AR
eases
he Group assesses at contract inception whether a contract is, or contains, a lease. hat is, i the contract conveys the ri ht to control the use o an identified asset or a period o time in exchan e or consideration.
ro p as a essee
he Group applies a sin le reco nition and measurement approach or all leases, except or short term leases and leases o low value assets. he Group reco nises lease lia ilities to ma e lease payments and ri ht o use assets representin the ri ht to use the underlyin assets.
i) Right-of-use assets
he Group reco nises ri ht o use assets at the commencement date o the lease i.e., the date the underlyin asset is availa le or use . Ri ht o use assets are measured at cost, less any accumulated depreciation and impairment losses, and ad usted or any remeasurement o lease lia ilities. he cost o ri ht o use assets includes the amount o lease lia ilities reco nised, initial direct costs incurred, and lease payments made at or e ore the commencement date less any lease incentives received. Ri ht o use assets are depreciated on a strai ht line asis over the lease term.
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