RIGHT-OF-USE ASSETS

On adoption of IFRS 16, the standard affected the way the group previously accounted for its operating leases being mostly various hotel property leases. Lease rental contracts include hotel property leases typically for fixed periods of 15 years to 99 years, but may have extension options. Up to, and including the 2019 financial year, as a lessee under IAS 17, the group classified leases as operating or finance leases based on its assessment of whether the leases transferred significantly all of the risks and rewards incidental to ownership of the underlying asset to the group. Payments made under operating leases were charged to profit or loss on a straight-line basis over the period of the lease. The group had no finance leases at 31 March 2019.

The following right-of-use assets were recognised as a result of the implementation of IFRS 16: