Annual report 2019

43. Leases

Group as a lessee

Group is a contractual party of leasing agreements related to such base assets as:

  • property,
  • vehicles,
  • land, including perpetual usufruct right to land,
  • cash deposit machines,
  • equipment,
  • IT equipments.

The leasing period of vehicles equals 1 to 5 years. Leasing agreements contain extension options. In respect of vehicles the Group concludes also leaseback agreements.

The Group is also a party to real estate leasing agreements. The contracts are concluded for both definite of 1 to 30 years and indefinite period. In the case of contracts concluded for an indefinite period, the Group determines the leasing period based on the notice period. The agreements provide for variable leasing fees depending on the index (e.g. CSO, HICP).

The Group has also land lease agreements concluded for an indefinite period, and perpetual usufruct rights for land received for the period of 40 to 100 years. Lease payments are indexed in accordance with the land management act.

Costs of leasing recognized in profit and loss account (143,417)
– cost of interest from leasing liabilities (8,704)
– cost of amortization of assets due to the right of use (124,853)
– costs related to short-term leases (recognized as administrative costs) (9,860)
Undiscounted lease payments by maturity 31.12.2019
up to 1 year 118,827
from 1 year to 5 years 350,628
over 5 years 198,954
Total 668,409
Book value of liabilities due to discounted lease 602,192

Group as a lessor

Lease contracts under which substantially all the risk and rewards of ownership are transferred to the lessee are classified as finance leases. The statement of financial position includes the value of receivables equal to the net leasing investment. The revenue recognition from finance lease agreements reflects the constant periodic rate of return on the net leasing investment made by the Group under finance leases.

The Group does not offer operational leasing products, i.e. those in which substantially all the risks and rewards of ownership are not transferred to the lessee.

Finance lease receivables 31.12.2019 31.12.2018
Undiscounted lease payments 4,212,586 3,789,499
Unrealized financial income (217,142) (227,760)
Present value of minimum lease payments 3,995,444 3,561,739
Impairment allowance (126,057) (115,118)
Total finance lease receivables 3,869,387 3,446,621
Undiscounted lease payments by maturity 31.12.2019 31.12.2018
up to 1 year 1,749,770 1,159,096
from 1 year to 5 years 2,270,297 2,403,109
over 5 years 192,519 227,294
Total undiscounted lease payments by maturity 4,212,586 3,789,499

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