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BTS Group Holdings Public Company Limited 6.4 Notes to Consolidated Financial Statements 231
Annual Report 2021/22
If ownership of the leased asset is transferred to the Group at the end The Group as a lessor
of the lease term or the cost reflects the exercise of a purchase option, A lease that transfers substantially all the risks and rewards incidental
depreciation is calculated using the estimated useful life of the asset. to ownership of an underlying asset to a lessee is classified as
finance leases. As at the commencement date, an asset held under a finance
Lease liabilities lease is recognised as a receivable at an amount equal to the net
Lease liabilities are measured at the present value of the lease payments investment in the lease or the present value of the lease payments
to be made over the lease term. The lease payments include fixed receivable and any unguaranteed residual value. Subsequently, finance
payments less any lease incentives receivable, variable lease payments income is recognised over the lease term to reflect a constant periodic
that depend on an index or a rate, and amounts expected to be rate of return on the net investment in the lease.
payable under residual value guarantees. Moreover, the lease payments
include the exercise price of a purchase option reasonably certain to A lease is classified as an operating lease if it does not transfer
be exercised by the Group and payments of penalties for terminating substantially all the risks and rewards incidental to ownership of an
the lease, if the lease term reflects the Group exercising an option underlying asset to a lessee. Lease receivables from operating leases
to terminate. Variable lease payments that do not depend on an index or is recognised as income in profit or loss on a straight-line basis over
a rate are recognised as expenses in the period in which the event or the lease term. Initial direct costs incurred in obtaining an operating
condition that triggers the payment occurs. lease are added to the carrying amount of the underlying assets and
recognised as an expense over the lease term on the same basis as
The Group discounted the present value of the lease payments by the lease income.
the interest rate implicit in the lease or the Group’s incremental
borrowing rate. After the commencement date, the amount of lease 4.19 Equity-settled share-based payment transactions
liabilities is increased to reflect the accretion of interest and reduced The Group recognises the share-based payment transactions at the
for the lease payments made. In addition, the carrying amount of lease date on which the options are granted, based on the fair value of the
liabilities is remeasured if there is a change in the lease term, a change share options. They are recorded as expenses over the expected life
in the lease payments or a change in the assessment of an option to of the share options, and a capital reserve for share-based payment
purchase the underlying asset. transactions is presented in shareholders’ equity.
Short-term leases and leases of low-value assets Estimating fair value for share-based payment transactions requires
A lease that has a lease term less than or equal to 12 months from determination relating to appropriate assumptions, including the
commencement date or a lease of low-value assets is recognised as expected life of the share options, share price volatility and
expenses on a straight-line basis over the lease term. dividend yield.
