Page 95 - ACCESS ANNUAL REPORT 2019

NOTES (continued)
S ar o significant acco nting po icies contin ed 2.9 Leases (continued)
Acco nting po icies app ied since an ar contin ed
ii ease iabi ities
At the commencement date o the lease, the Group reco nises lease lia ilities measured at the present value o lease payments to e made over the lease term. he lease payments include fixed payments includin in su stance fixed payments less any lease incentives receiva le, varia le lease payments that depend on an index or a rate, and amounts expected to e paid under residual value uarantees. he lease payments also include the exercise price o a purchase option reasona ly certain to e exercised y the Group and payments o penalties or terminatin the lease, i the lease term re ects the Group exercisin the option to terminate.
aria le lease payments that do not depend on an index or a rate are reco nised as expenses unless they are incurred to produce inventories in the period in which the event or condition that tri ers the payment occurs.
In calculatin the present value o lease payments, the Group uses its incremental orrowin rate at the lease commencement date ecause the interest rate implicit in the lease is not readily determina le. A ter the commencement date, the amount o lease lia ilities is increased to re ect the accretion o interest and reduced or the lease payments made. In addition, the carryin amount o lease lia ilities is remeasured i there is a modification, a chan e in the lease term, a chan e in the lease payments e. ., chan es to uture payments resultin rom a chan e in an index or rate used to determine such lease payments or a chan e in the assessment o an option to purchase the underlyin asset. he Group’s lease lia ilities are included in other lia ilities see ote 2 .
iii Short ter eases and eases o ow va e assets
he Group applies the short term lease reco nition exemption to its short term leases i.e., those leases that have a lease term o 12 months or less rom the commencement date and do not contain a purchase option . It also applies the lease o low value assets reco nition exemption to leases o office e uipment that are considered to e low value. ease payments on short term leases and leases o low value assets are reco nised as expense on a strai ht line asis over the lease term.
ro p as a essor
eases in which the Group does not trans er su stantially all the ris s and rewards incidental to ownership o an asset are classified as operatin leases. Rental income arisin is accounted or on a strai ht line asis over the lease terms and is included in revenue in the statement o profit or loss due to its operatin nature. Initial direct costs incurred in ne otiatin and arran in an operatin lease are added to the carryin amount o the leased asset and reco nised over the lease term on the same asis as rental income. Contin ent rents are reco nised as revenue in the period in which they are earned.
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