LEASE (Tables)

6 Months Ended

Jun. 30, 2020


	Lands	Machines		Ships
	and	and		and
	Farms	Equipment’s	Buildings	boats	Vehicles	Total
Balance as of December 31, 2018
Initial adoption on January 1, 2019	1,762,943	143,685	41,570	1,408,640	1,012	3,357,850
Additions	260,982	1,529	39,794	612,022		914,327
Amortization (1)	(254,280)	(15,163)	(35,365)	(116,207)	(925)	(421,940)
Balance as of December 31, 2019	1,769,645	130,051	45,999	1,904,455	87	3,850,237
Additions	337,323	2,153	26,716	194,907	63	561,162
Amortization (1)	(119,220)	(5,054)	(10,521)	(76,771)	(29)	(211,595)
Balance as of June 30, 2020	1,987,748	127,150	62,194	2,022,591	121	4,199,804

The amount of R$118,286 (R$116,577 as of June 30, 2019) related to land is reclassified to biological assets to compose the formation cost.

Schedule of present value of lease liabilities


	Average rate - %			Present value of
Nature of agreement	p.a. (1)		Maturity (2)	liabilities
Lands and farms		11.45	January 2048	2,164,710
Machines and Equipment’s		10.62	July 2032	247,281
Buildings		9.80	November 2030	41,650
Ships and boats		11.39	February 2039	2,720,284
Vehicles		10.04	December 2021	47
				5,173,972

To determine the discount rates, quotes were obtained from financial institutions for agreements with characteristics and average terms similar to the lease agreements.

Refers to the original maturities of the agreements and, therefore, do not consider eventual renewal clause.

Summary of changes in lease liabilities


Balance as of December 31, 2018
Initial adoption on January 1, 2019		3,428,897
Additions		914,327
Payments		(646,487)
Accrual of financial charges (1)		275,404
Exchange rate variation		11,929
Balance as of December 31, 2019		3,984,070
Additions		561,162
Payments		(354,289)
Accrual of financial charges (1)		240,528
Exchange rate variation		742,501
Balance as of June 30, 2020		5,173,972

Current		704,174
Non-current		4,469,798

The amount of R$37,040 related to interest expenses on leased lands is capitalized to biological assets to compose the formation cost (R$30,440 as of June 30, 2019).

Schedule of expenses recognised in profit or loss

In the six-month period ended June 30, 2020 and 2019, the amounts recognized in the unaudited condensed consolidated interim financial information, are set for the below:


	June 30,	June 30,
	2020	2019
Expenses relating to short-term assets	2,531	26,570
Expenses relating to low-value assets	6,428	4,581
	8,959	31,151