41061 Unite AR22 HI-RES WEB-READY - Flipbook - Page 209
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
207
OTHER INFORMATION
3.3 Right of use assets and other non-current assets
Accounting policies
Leased assets
The Group assesses whether a contract is or contains a lease, at inception of the contract. The Group recognises a
right of use asset and a corresponding lease liability (see note 4.6a) with respect to all lease arrangements in which it
is the lessee. Right of use assets are initially measured at cost, which comprises a value set equal to the lease liability,
adjusted for prepaid or accrued lease payments and lease incentives. They are subsequently measured at this initial
value less accumulated depreciation and impairment losses.
Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. Property,
plant and equipment mainly comprise leasehold improvements at the Group’s head office and London office as well
as computer hardware at these sites.
Depreciation is charged to the income statement on a straight-line basis over the estimated useful lives. Freehold land
is not depreciated. The estimated useful lives are as follows:
•
Right of use assets
Shorter of lease and economic life
•
Property, plant and equipment
4–7 years
Intangible assets
Intangible assets predominantly comprise computer software which allows customers to book online and processes
transactions within the sales cycle. The expenditure capitalised includes the cost of materials, direct labour and an
appropriate proportion of overheads. The assets are amortised on a straight-line basis over four to seven years, being
the estimated useful lives of the intangible assets, from the date they are available for use. Amortisation is charged to
the income statement within operating expenses.
3.3a) Right of use assets
2022
Buildings
£m
Other
£m
2021
Total
£m
Buildings
£m
Other
£m
Total
£m
Cost
At 1 January
5.8
1.3
7.1
5.8
1.4
7.2
–
0.4
0.4
–
0.4
0.4
(0.8)
(0.4)
(1.2)
–
(0.5)
(0.5)
5.0
1.3
6.3
5.8
1.3
7.1
At 1 January
(2.9)
(0.6)
(3.5)
(2.2)
(0.7)
(2.9)
Amortisation charge for the year
(0.8)
(0.5)
(1.3)
(0.7)
(0.4)
(1.1)
0.8
0.4
1.2
–
0.5
0.5
(2.9)
(0.7)
(3.6)
(2.9)
(0.6)
(3.5)
Additions
Disposals
At 31 December
Amortisation
Disposal
At 31 December
Carrying value at 1 January
2.9
0.7
3.6
3.6
0.7
4.3
Carrying value at 31 December
2.1
0.6
2.7
2.9
0.7
3.6
The Group leases several assets including office equipment and vehicles. The average lease term is three years.
