The Group determines whether a contract is or contains a lease at inception of the contract. The Group classifies as a lease a contract that conveys to the Group the right to control the use of an identified asset for a given period of time.
Leases are recognized on the statement of financial position at the commencement date of the contract, except for leases covered by one of the two exemptions allowed by IFRS 16 “Leases” (short-term leases or leases of low value assets), adopted by the Group.
Leases are reflected in the statement of financial position by recognizing an asset representing the right to use the leased asset and a related liability corresponding to the obligation to make future lease payments. In the income statement, a depreciation of the right-of- use assets is recorded in operating expenses, separately from the interest expense on lease liabilities. In the cash flow statement, cash outflows relating to interest on lease liabilities impact operating activities flows, while repayment of the lease liabilities impact financing activities flows.
Short-term leases (i.e. lease term of 12 months or less) and leases of low-value assets (such as IT equipment) are expensed directly in operating expenses on a straight-line basis over the lease term.
The leases contracted by the Group as a lessee mainly relate to the following categories of assets:
