Interest-bearing liabilities form part of the financial liabilities (see accounting policy 11b), except for lease liabilities (see accounting policy 19b).
(19a) Financial obligations
Interest-bearing financial obligations are initially recognised at fair value, less attributable transaction costs. After initial recognition, interest-bearing financial obligations are measured at amortised cost, with any difference between amortised cost and the redemption amount recognised in the statement of profit or loss over the term of the obligations using the effective interest method.
(19b) Lease liabilities
On the commencement date of the lease, the Group measures the liability at the net present value of the lease payments that have to be made in the future. These include fixed lease payments (including in-subtance fixed lease payments) less lease incentives still to be received, variable lease payments depending on an index or interest rate and amounts expected to be payable under residual value guarantees. The lease payments also include the purchase option price if it is reasonably certain that the Group will exercise this option. The lease payments also include penalties for termination of the lease if the lease period reflects the exercise by the Group of an option to terminate the lease. Variable lease payments not depending on an index or rate are expensed in the period in which the event or circumstance giving rise to these payments occurs.
When calculating the net present value of the lease payments, the Group uses the incremental borrowing rate if the interest rate implicit in the lease cannot be readily determined. After the commencement date, the liability is increased in respect of interest and reduced by the lease payments made. The Group remeasures the liability in the event of a change in the lease agreement, an adjustment of the lease term, a reassessment of an in-substance fixed lease payment or a change in its assessment, or when a purchase option is exercised.