Current report of foreign issuer pursuant to Rules 13a-16 and 15d-16 Amendments

Right-of-Use Assets

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Right-of-Use Assets
6 Months Ended
Jul. 31, 2019
Right-of-use Assets  
Right-of-Use Assets

15 Right-of-use assets

 

The Group leases warehouse, retail and office facilities. The leases typically run for a period of 3 years with an option to renew the lease after that date. Lease payments are renegotiated every resigning period to reflect market rentals. Some leases provide for additional rent payments that are based on changes in local price indices. For certain leases, the Group is restricted from entering into any sub-leasing arrangements.

 

The Group also leases IT equipment and other point of sale equipment.

 

Information about leases for which the Group is a lessee is presented below:

 

Right-of-use assets

 

Right-of-use assets related to leased properties that do not meet the definition of investment property are presented as property, plant and equipment (see note 8).

 

    Land & Buildings     Plant, furniture, fittings and motor vehicles     Total  
    NZ $000’s     NZ $000’s     NZ $000’s  
Balance as at 1 February     26,933       542       27,475  
Additions to right-of-use-assets     2,481       72       2,553  
Depreciation charge for the year     (4,224 )     (121 )     (4,345 )
Balance at 31 July 2019     25,190       493       25,683  

 

Amounts recognised in profit or loss

 

    2019  
    NZ $000’s  
Interest of lease liabilities     857  
         

 

Extension options

 

Some property leases contain extension options exercisable by the Group up to one year before the end of the non-cancellable contract period. Where practicable, the Group seeks to include extension options in new leases to provide operational flexibility. The extension options held are exercisable only by the Group and not by the lessors. The Group assesses at lease commencement date whether it is reasonably certain to exercise the extension options. The Group reassesses whether it is reasonably certain to exercise the options if there is a significant event or significant changes in circumstances within its control.