Rangatira Annual Report 2023 - Flipbook - Page 60
60
R anga tira Annua l Rep or t 2 0 2 3
Rangatira Group
Notes to the Consolidated
Financial Statements (continued)
For the year ended 31 March 2023
Note 16 Leases
The Group assesses at contract inception whether a contract contains a lease. The Group recognises a right-of-use asset and lease
liabilities for contracts that contain a lease, except for when the practical expedient is applied by the Group when the lease is for 12
months or less, or the underlying asset is of low value.
Right-of-use assets and lease liabilities are initially measured at the present value of the remaining lease payments, discounted at the
incremental borrowing rate. Subsequently:
the carrying amount of the right-of-use asset is depreciated over its expected useful life.
the carrying value of the liability is adjusted to reflect interest and lease payments made. Lease liabilities may be re-measured
when there is a change in future lease payments arising from a change in an index or market rate, or if there is a change in the
Group's estimate of the amount expected to be payable.
The Group assesses at lease commencement whether it expects to exercise renewal options included in contracts. Where it is
reasonably certain that renewal options will be exercised, the extension period is included in the right-of-use asset and lease liability
calculation.
The Group has lease contracts relating to its premises which are used as part of its operations.
The following is a summary of the movements in the Group's lease liabilities. Right of use assets are included as part of the Group's
property, plant and equipment, disclosed in note 9.
2023
$000
Restated*
2022
$000
62,573
26,841
4,184
852
816
683
Additions from acquisition of subsidiary
1,783
34,089
Modifications
3,357
2,975
Lease payments
(7,108)
(3,587)
Balance at 31 March
65,605
61,853
5,610
7,658
Non-current
59,995
54,915
Total lease liability balance
65,605
62,573
Balance at 1 April
Accretion of interest
Additions
Current
Leases in which the Group does not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as
operating leases. Rental income arising is accounted for on a straight-line basis over the term of the lease and is included in revenue.
Initial indirect costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and
recognised over the term of the lease on the same basis as rental income. Contingent rents are recognised as revenue in the period
they are incurred.
The Group has receivables from operating leases relating to the sub lease of clinics within the private hospital and the lease of
premises on its investment property.