+ 80 / 125 6. Plant, property and equipment (continued) Accounting judgements and estimates Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net Right-of-use assets (leases) present value of the following lease payments: This note provides information for right-of-use of assets . fixed payments, less any lease incentives receivable where the group is a lessee . the exercise price of a purchase option if the Group is Consolidated reasonably certain to exercise that option, and Right-of-use assets 2022 2021 . payments of penalties for terminating the lease, if the lease $'000 $'000 term reflects the Group exercising that option. Land and buildings Lease payments to be made under reasonably certain At the beginning of the year 3,924 1,394 extension options under management's assessment are also Additions 171 3,093 included in the measurement of the liability. Depreciation (range 1-10 years) (765) (563) The lease payments are discounted using the interest rate Disposals implicit in the lease. If that rate cannot be readily determined, At the end of the year 3,330 3,924 the lessee's incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain the asset. Plant and equipment At the beginning of the year 6,337 9,082 Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease Acquired right-of-use assets 35 period so as to produce a constant periodic rate of interest on Additions 726 1,546 the remaining balance of the liability for each period. Disposals Management has applied judgement in determining whether Depreciation (range 1-10 years) (2,854) (4,291) assets used by a supplier in providing services to the Group At the end of the year 4,244 5,337 qualify as right-of-use assets. Total 7,574 10,261 Right-of-use assets are depreciated over the shorter of the asset's useful life or the lease term on a straight-line basis. If the group is reasonably certain to exercise a purchase option, Consolidated the right-of-use asset is depreciated over the underlying Right-of-use asset lease liabilities 2022 2021 asset's useful life. The Group has chosen not to do so for the $'000 $'000 right-of-use assets held by the Group. Current 3,489 3,953 Payments associated with short-term leases of equipment and Non-current 5,048 6,568 vehicles and all leases of low-value assets are recognised on a straight-line basis as an expense in profit or loss. Total 8,537 10,521 Short-term leases are leases with a lease term of 12 months or less without a purchase option. The Group's leasing activities The lease term is reassessed if an option is actually exercised The Group leases offices, warehouses, equipment and (or not exercised) or the Group becomes obliged to exercise vehicles as part of its operational requirements. Contracts are (or not exercise) it. The assessment of reasonable certainty is ypically made for fixed periods of 1 to 10 years but may have only revised if a significant event or a significant change in extension options as described below. circumstances occurs, which affects this assessment, and that Contracts may contain both lease and non-lease components. is within the control of the lessee. During the current financial The group allocates the consideration in the contract to the year, the financial effect of remeasuring lease terms to reflect ease and non-lease components based on their relative stand- the effect of exercising extension and termination options was alone value. As a Lessee the Group will individually access an increase in recognised lease liabilities and right-of-use single lease components assets of $171,287 (2021: $145,515). Lease terms are negotiated on individual operational requirements and contain a wide range of different terms and conditions. The lease agreements do not impose any covenants other than the security interests in the leased assets that are held by the lessor. Leased assets are not used as security for borrowing purposes. All finance and operating leases are recognised as right-of-use assets with a corresponding liability at the date at which each leased asset is available for use by the group