82
Finsbury Food Group Annual Report and Accounts 2020
Notes to the Consolidated Financial Statements/Continued
11. Leases
This is the first full-year set of the Group’s Financial Statements in which IFRS 16 has been applied. The Group has adopted IFRS 16 from 30 June 2019 using the modified retrospective approach, comparatives have not been restated. The reclassifications and adjustments from the new leasing rules are therefore recognised in the opening Consolidated Statement of Financial Position on 30 June 2019. Under IFRS 16 the previous operating leases charge has been replaced by the depreciation on the right of use asset and interest on the lease liability. The Group leases many assets including land and buildings, vehicles, machinery and equipment.
The impact on the Consolidated Statement of Financial Position as at 27 June 2020 and the Consolidated Statement of Comprehensive Income for the 52 weeks to 27 June 2020 are shown in the tables below:
(i) Amounts recognised in the Consolidated Statement of Financial Position: Property plant and equipment comprises owned and leased assets that do not meet the definition of investment property.
Note
Property plant and equipment owned Right of use assets
13 13
27 June 2020 £000
52,302
9,434 61,736
Included within right of use assets in the table above are assets with a net book value of £1,373,000 previously recognised as a Finance lease under IAS 17. Right of use assets
Property £000
Adjustment on transition to IFRS 16 Assets previously recognised as a finance lease under IAS 17 Assets previously recognised as an operating lease under IAS 17
Onerous lease transferred as a proxy for impairment on transition (Note 21) Total adjustments on transition to IFRS 16 Lease modifications – Note 21 Reversal of impairment
Depreciation charge for the year Balance at 27 June 2020
Plant, equipment and vehicles £000
Total £000
-
14,031 (3,804) 10,227 (454) 454
(1,368) 8,859
1,373 941 -
2,314 - -
(551) 1,763
1,373
14,972 (3,804) 12,541 (454) 454
(1,919) 10,622
Right of use assets recognised upon adoption of IFRS 16 previously recognised as operating leases under IAS 17 on 30 June 2019 were £11,168,000 (cost £14,972,000 net of impairment of £3,804,000) and £1,373,000 previously recognised as a finance Lease under IAS 17. There were no additions to right of use assets during the year.
Depreciation for the period to 27 June 2020 on right of use assets for leases previously treated as operating leases under IAS 17 is £1,734,000 and a net book value at 27 June 2020 of £9,434,000.
Lease liabilities
At 27 June 2020 £000
Contracted undiscounted minimum lease payments Not later than one year
Later than one year and not later than five years Later than five years Total gross payments
Discounted using the Group’s weighted average incremental borrowing rate Less low-value leases not recognised as a liability
Less short-term and low-value leases recognised as an expense on a straight-line basis Add/less adjustments as a result of a different treatment of termination options Lease liability recognised Current lease liability
Non-current lease liability
At 30 June 2019 £000
3,369 6,658 3,859
13,886 12,495
(22)
(164) (14)
12,295 3,191 9,104
3,587 7,606 5,321
16,514 15,709
(31)
(234) 356
15,800 3,105
12,695
Lease liabilities recognised on adoption of IFRS 16 on 30 June 2019 for assets previously treated as operating leases under IAS 17 were £14,972,000 these had a closing value of £11,823,000 at 27 June 2020.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112
