Note 17 Leases
Lease liabilities includes the present value of the following lease payments:
- Fixed payments (including fees that are fixed in substance)
- Variable lease fees depending on an index or price
- Guaranteed residual value that the lessee expects to pay to the lessor
- The exercise price of a call option, if it is reasonably certain that the lessee will exercise the option, and
- The fine for terminating the lease, if the length of the lease reflects the assumption that the lessee will take advantage of this opportunity
Lease payments are discounted with a discount rate based on the country's underlying currency, exchange rate, length of contract and underlying interest with a supplement for company-specific risk premium. The discount rate is the same for all assets, unless a specific interest rate is specified in the agreement.
Lease payments related to short-term leases and leases of low value assets are recognized as operating expenses on a straight-line basis over the term of the lease. Assets with low value include, among other things, printers and copying machines. Full lease accounting principle can be found in note 16.