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Notes To The
Financial Statements
As at 31 March 2019
2.
Significant accounting policies (cont’d.)
2.3 Summary of significant accounting policies (cont’d.)
(u) Leases
(i) As lessee
Finance leases, which transfer to the Group and the Company substantially all the risks and
rewards incidental to ownership of the leased item, are capitalised at the inception of the lease
at the fair value of the leased asset or, if lower, at the present value of the minimum lease
payments. Any initial direct costs are also added to the amount capitalised. Lease payments are
apportioned between the finance charges and reduction of the lease liability so as to achieve a
constant rate of interest on the remaining balance of the liability. Finance charges are charged
to profit or loss. Contingent rents, if any, are charged as expenses in the periods in which they
are incurred.
Leased assets are depreciated over the estimated useful life of the asset. However, if there is no
reasonable certainty that the Group and the Company will obtain ownership by the end of the
lease term, the asset is depreciated over the shorter of the estimated useful life and the lease
term.
(ii) As lessor
Leases where the Group and the Company retain substantially all the risks and rewards of
ownership of the asset are classified as operating leases. Initial direct costs incurred in negotiating
an operating lease are added to the carrying amount of the leased asset and recognised over
the lease term on the same basis as rental income. The accounting policy for rental income is
set-out in Note 2.3(q)(ii).
(v) Income taxes
(i) Current tax
Current tax assets and liabilities are measured at the amount expected to be recovered from
or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted by the reporting date.
Current taxes are recognised in profit or loss except to the extent that the tax relates to items
recognised outside profit or loss, either in other comprehensive income or directly in equity.
financial
statements
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