3.5 Leases
Alpiq is lessee in various contracts particularly in connection with power plants, land, building and IT infrastructure rentals. These leases are concluded for a fixed term of one month to 20 years and may contain renewal or termination options. The table below shows the change in net carrying amounts of the right of use assets capitalised in the balance sheet line item “Property, plant and equipment”:
|
CHF million |
Rights of use buildings |
Rights of use power plants |
Rights of use others |
Total |
|
Net carrying amount at 1 January 2023 |
17 |
18 |
1 |
36 |
|
Investments |
4 |
|
|
4 |
|
Reclassified to “Assets held for sale” |
– 1 |
|
|
– 1 |
|
Depreciation |
– 3 |
– 2 |
– 1 |
– 6 |
|
Currency translation differences |
– 1 |
|
|
– 1 |
|
Net carrying amount at 31 December 2023 |
16 |
16 |
0 |
32 |
|
Of which, cost value |
27 |
34 |
4 |
65 |
|
Of which, accumulated depreciation |
– 11 |
– 18 |
– 4 |
– 33 |
|
CHF million |
Rights of use buildings |
Rights of use power plants |
Rights of use others |
Total |
|
Net carrying amount at 1 January 2022 |
16 |
21 |
2 |
39 |
|
Acquisition / disposal of subsidiaries |
– 1 |
|
|
– 1 |
|
Investments |
8 |
|
|
8 |
|
Divestments / early termination |
– 2 |
|
|
– 2 |
|
Depreciation |
– 3 |
– 2 |
– 1 |
– 6 |
|
Currency translation differences |
– 1 |
– 1 |
|
– 2 |
|
Net carrying amount at 31 December 2022 |
17 |
18 |
1 |
36 |
|
Of which, cost value |
26 |
35 |
4 |
65 |
|
Of which, accumulated depreciation |
– 9 |
– 17 |
– 3 |
– 29 |
The change in carrying amounts of the lease liabilities included under financial liabilities can be seen in note 3.4. The total cash outflow from leases amounted to CHF 7 million in 2023 (previous year: CHF 8 million).
Accounting policies
The Alpiq Group applies a uniform approach for the recognition and measurement of leases. It does not make use of the practical expedients for short-term and low-value leases permitted under IFRS 16. At inception of a contract, Alpiq assesses whether the contract is or contains a lease. A lease exists if a contract grants Alpiq the right to control a certain asset over a period of time in exchange for consideration. The right of use assets and the lease liabilities representing Alpiq’s obligation to make lease payments are recognised in the balance sheet at the time when the lease asset becomes available. The right of use assets are included under “Property, plant and equipment” in the balance sheet. They are measured at amortised cost and depreciated on a straight-line basis over the lease term or the lifetime of the asset, taking into account any impairment losses. Acquisition costs include the amount of recognised lease liabilities plus any dismantling obligations, directly attributable acquisition costs, and one-off payments made at or before the start of the contract, less any lease incentives received.
The lease liabilities are recognised initially at the present value of the expected future lease payments. The present value is calculated with the lessee’s incremental borrowing rate applicable for the country, the term and the currency. In subsequent periods, the lease liabilities are measured at amortised cost by application of the effective interest method. The lease liabilities are recognised in current or non-current financial liabilities as appropriate.