12 » Right-of-Use Assets
As a result of the first-time application of IFRS 16, the company recognized right-of-use assets in an amount of € 2.9 billion in relation to leases previously classified as operating leases. The following table presents a reconciliation of the carrying amount of right-of-use assets:
|
|
Land and buildings |
|
Technical equipment and machinery |
|
Other equipment, furniture and fixtures |
|
Right-of-use assets |
|---|---|---|---|---|---|---|---|---|
December 31, 2018 |
|
– |
|
– |
|
– |
|
– |
Recognition of right-of-use assets on first-time application of IFRS 16 |
|
2,669 |
|
126 |
|
61 |
|
2,856 |
Transfer from property, plant and equipment due to first-time application of IFRS 16 |
|
82 |
|
– |
|
– |
|
82 |
January 1, 2019 |
|
2,751 |
|
126 |
|
61 |
|
2,938 |
Additions |
|
672 |
|
4 |
|
10 |
|
686 |
Depreciation |
|
(596) |
|
(30) |
|
(25) |
|
(651) |
Impairment losses |
|
(13) |
|
– |
|
– |
|
(13) |
Other changes |
|
(29) |
|
0 |
|
(0) |
|
(29) |
December 31, 2019 |
|
2,785 |
|
100 |
|
46 |
|
2,931 |
As a general principle, it is regularly assessed whether there are any indications that right-of-use assets might be impaired. Irrespective of the existence of such indications, right-of-use assets in own-retail stores are tested annually for impairment where the recoverable amount is calculated using the ‘discounted cash flow method’ as part of determining the profitability of the respective own-retail stores.
Impairment losses recognized in the presented periods mainly relate to the company’s own-retail activities for which contrary to expectations there will be an insufficient flow of future economic benefits.
Income from sub-leasing of right-of-use assets recognized in the consolidated income statement in 2019 amounted to € 3.3 million.
Further information on total depreciation and amortization expenses, impairment losses and reversals of impairment losses is provided in these Notes. NOTE 33