On the commencement date (the date on which the asset concerned becomes available for use), the Group recognises a corresponding right-of-use asset. The right-of-use asset is measured at cost less accumulated depreciation and impairment, adjusted for any revaluation of the lease liability. Cost comprises the recognised amount of the lease liability, initial direct costs and lease payments made before the commencement date, less lease incentives received. Unless the Group is reasonably certain that it will acquire ownership of the underlying asset at the end of the lease period, the right-of-use asset is depreciated on a straight-line basis from the commencement date to the earlier of the following two dates: the end of the period of use or the end of the lease period. Improvements made to leased assets are depreciated over a period that is shorter than or the same as the period used for the leased asset concerned. Right-of-use assets are assessed annually for impairment.
Non-lease components, specifically amounts for maintenance and fuel that are included in the lease instalments for cars, are separated from the lease components split if these amounts are significant and readily determined. For other leases, the Group applies the practical expedient of treating non-lease components in the same way as lease components.
The Group applies the practical expedient of not recognising short-term leases (with a lease term of less than 12 months and containing no purchase option) in the statement of financial position; this also applies to leases for which the new value of the underlying asset is less than € 5,000. The lease instalments for such leases are recognised in the statement of profit or loss over the lease period concerned.
The lease period relates to the non-cancellable period of the lease, together with the periods covered by a renewal option if it is reasonably certain that the Group wilt exercise this option and periods covered by a termination option if it is reasonably certain that the Group will not exercise this option.