The principles of accounting to be applied with IFRS 16 “Leases” are set out in the section on accounting policies.
Currently, there are leases for both property and machinery and furnishings (vehicles, IT and other items). The leases for machinery and furnishings have a residual term of between one and five years and fixed conditions. The residual terms of the property rental agreements are between one and ten years. Various rental agreements feature options to extend the rental period. Any assessment of the residual term of leases with extension options involves estimates and assumptions. These estimates are inherently uncertain and may not prove to be accurate.
The capitalised right-of-use assets, the lease liabilities, the effect in terms of depreciation and amortisation in the income statement and on the financial result as well as the impact on the statement of cash flows are set out in the individual Notes to the consolidated financial statements. By way of summary, IFRS 16 “Leases” has the following impact on the consolidated financial statements:
|in CHF 000||31.12.2021||31.12.2020|
|Right of use, leasing – real estate||87 910||90 022|
|Cumulative depreciation in right of use – real estate||(34 905)||(24 290)|
|Right of use, leasing – operating and office equipment||2 796||2 808|
|Cumulative depreciation in right of use – operating and office equipment||(1 864)||(1 401)|
|Assets||53 936||67 139|
|Lease obligations||55 239||68 185|
|Liabilities||55 239||68 185|
|in CHF 000||2021||2020|
|Depreciation in right of use, leasing – real estate||(15 438)||(14 045)|
|Depreciation in right of use, leasing – operating and office equipement||(791)||(833)|
|Depreciation in right of use, leasing||(16 229)||(14 877)|
|Financial expense leasing||(910)||(1 037)|
|Financial income, net leasing||(910)||(1 037)|
Short-term leases with terms of less than one year and low-value underlying assets do not have to be recognised and were recorded in the reporting year as lease expenses under other operating expenses in the amount of around CHF 2.2 million (short-term leases) and CHF 1.1 million (low-value underlying assets) (previous year: CHF 2.1 million and CHF 1.0 million).
In the reporting year, TX Group received no material rent concessions in connection with the coronavirus crisis. The revenue from subleasing in relation to capitalised right-of-use assets is not material, and there are no sale and leaseback transactions.
As at 31 December 2021, obligations associated with leases signed for but not yet started amounted to CHF 133.9 million in total (previous year: zero). These obligations are recognised, in accordance with IFRS 16, as a liability at the present value at the time the lease starts.