Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Right-of-Use Assets

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Right-of-Use Assets
12 Months Ended
Jan. 31, 2021
Right-of-use Assets  
Right-of-Use Assets
19 Right-of-use assets

 

The Group leases warehouse, retail and office facilities. The leases typically run for a period of 5 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 information technology 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 16).

 

    Land & Buildings     Plant, furniture, fittings and motor vehicles     Total  
    NZ $000’s     NZ $000’s     NZ $000’s  
Balance as at 1 February     23,392       417       23,809  
Additions to right-of-use-assets     2,700       100       2,800  
Depreciation charge for the year     (6,982 )     (162 )     (7,144 )
Impairment of right-of-use assets     (1,221 )     -       (1,221 )
Foreign exchange movements     157       -       157  
Balance at 31 January 2021     18,046       355       18,401  

 

    Land & Buildings     Plant, furniture, fittings and motor vehicles     Total  
    NZ $000’s     NZ $000’s     NZ $000’s  
Balance as at 1 February     25,616       542       26,158  
Additions to right-of-use-assets     6,255       72       6,327  
Depreciation charge for the year     (8,479 )     (197 )     (8,676 )
Balance at 31 January 2020     23,392       417       23,809  

 

Amounts recognised in profit or loss

 

    2021     2020  
    NZ $000’s     NZ $000’s  
                 
Interest expense on lease liabilities     1,405       1,674  

 

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.