Page 180 - CJ 2019 INTEGRATED REPORT

178 1 NOTES TO THE FINANCIAL
STATEMENTS 31 DECEMBER 2019 (CONTINUED)
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Investment property (Continued)
The The Group only enters as as as as as as as as as lessor into lease lease lease lease agreements that are classified classified as as as as as as as as as operating operating leases (IAS 17) A A lease lease lease lease is is classified classified as as as as as as as as as as as as an an an an operating operating operating lease lease lease lease lease lease i i if it does not transfer substantially all all the risks and rewards incidental to to ownership The The properties properties leased out under operating operating leases are are included in in in in in in in in ‘Investment properties’ Lease incentives are are recognised as as as as as as as a a a a a a a a a a a a a a a a a a a a a a reduction of rental income on on on on on a a a a a a a a a a a a a a a a a a a a a a straight-line basis over the the lease lease lease lease term The The Group Group makes payments to agents for services in in in in in in in in connection with with with negotiating lease lease lease contracts with with with the the the the the Group’s lessees The The letting fees are capitalised within the the the the carrying amount of the the the the related investment property and depreciated over the the the the lease lease term Right of use assets
Following the the the the the the adoption of of of of of IFRS 16 the the the the the the Group Group has presented the the the the the the right right of of of of of use use assets
assets
separately in in fin fin the the the the the the statement of of of of of financial position Alternatively the the the the the the Group Group may choose to resent resent right right of of of of of use use assets
assets
that do do not meet the the the the the the definition of of of of of investment property property within property property plant and equipment Right-of-use assets
are measured at cost comprising the following:
• the the amount of of the the initial measurement of of lease liability
• any any lease lease payments made at at or or before the commencement date less any any lease lease incentives received • any initial direct costs and • restoration costs Right-of-use assets
are generally depreciated depreciated over over the the the the the shorter of of of the the the the the asset’s useful life and the the the the the lease term on on on a a a a a a a a a a a a a a a a a straight- line basis If the the the the the the the group group is is is is reasonably certain to exercise a a a a a a a a a a a a a a a a a a a a a a a purchase option the the the the the the the right-of-use asset asset asset asset is is is is depreciated depreciated over over the the the the the the underlying asset’s useful life While the the the the the the group group group revalues its land and and and buildings buildings that are presented within property plant and and and equipment it it has chosen not to do so for the the the the right-of-use buildings buildings held by the the the the group group Payments associated with with short-term leases leases leases leases of of o of equipment and and vehicles and and all leases leases leases leases of of o of low-value assets
are are recognised on on a a a a a a a a a a a a a a a a a a a a a a a a a straight-line basis as as as as as as as as as as an an an an expense in in profit or or or or loss Short-term leases leases leases leases are are leases leases leases leases with with a a a a a a a a a a a a a a a a a a a a a a a a a lease lease lease lease lease term term term of of o of of o 12 months or or or or less Low-value assets
comprise IT equipment and small items o of o office furniture CURRIMJEE JEEWANJEE AND COMPANY LIMITED