The Company depreciates the right-of-use assets as follows:
•
office space and other premises: 3-13 years,
•
points of sale premises: 2 years,
•
vehicles: 4-5 years.
Right-of-use
assets
are
subject
to
impairment
based
on
the
accounting
policies
as
presented
in note 5m.
At
the
commencement
date,
the
lease
payments
included
in
the
measurement
of
the
lease
liability
comprise
the
following
payments
for
the
right
to
use
the
underlying
asset
during
the
lease term that are not paid at the commencement date:
•
fixed
payments
(including
in-substance
fixed
payments),
less
any
lease
incentives
receivable,
•
variable
lease
payments
that
depend
on
an
index
or
a
rate,
initially
measured
using
the index or rate as at the commencement date,
•
the
exercise
price
of
purchase
option
if
the
lessee
is
reasonably
certain
to
exercise
that option,
•
payments
of
penalties
for
early
terminating
the
lease
(understood
as
any
economic
factors
discouraging
the
Company
from
terminating
the
contract),
if
the
lease
term
reflects that the lessee will exercise the option to terminate the lease,
•
amounts expected to be payable by the lessee under residual value guarantees.
Lease
payments
are
discounted
using
the
interest
rate
implicit
in
the
lease,
if
that
rate
can
be
readily determined. Otherwise the lessee’s incremental borrowing rate is used.
After the commencement date, the Company measures the lease liability by:
•
increasing the carrying amount to reflect interest expense on the lease liability;
•
reducing the carrying amount to reflect the lease payments made;
•
remeasuring
the
carrying
amount
to
reflect
any
reassessment
or
lease
modifications,
e.g. change in the lease term or the amount of future lease payments.
Interest
expenses
on
lease
liabilities
are
recognized
in
profit
or
loss
over
the
term
of
the
lease.
v) Income tax
Income
tax
expense/benefit
for
the
year
comprises
current
and
deferred
tax.
Income
tax
is
recognized
in
profit
or
loss
except
for
items
recognized
directly
in
other
comprehensive
income.
Current
tax
is
the
tax
payable
on
the
taxable
income
for
the
year,
using
tax
rates
enacted
at
the balance sheet date, and any adjustment to tax payable in respect of previous years.
Deferred
tax
is
recognized
using
the
balance
sheet
method,
in
respect
of
temporary
differences
between
the
carrying
amounts
of
assets
and
liabilities
for
financial
reporting
purposes
and
the
amounts
used
for
taxation
purposes.
Deferred
taxes
are
measured
based
on
the
expected
manner
of
realisation
or
settlement
of
the
carrying
amount
of
assets
and
liabilities,
respectively,
using
tax
rates
enacted
or
substantively
enacted
at
the
balance
sheet
date.
The
Company
does
not
recognize
deferred
tax
liability
for
taxable
temporary
differences
associated
with
investments
in
subsidiaries,
associates
and
interests
in
joint
arrangements
when
the
Company
is
able
to
control
the
timing
of
the
reversal
of
the
temporary
differences
and it is probable that the temporary differences will not reverse in the foreseeable future.
A
deferred
tax
asset
is
recognized
to
the
extent
that
it
is
probable
that
future
taxable
profits
will
be
available
against
which
the
deductible
temporary
differences
can
be
utilised.
Deferred
tax
assets
are
reduced
to
the
extent
that
it
is
no
longer
probable
that
the
related
tax
benefit
