Agribel Annual Financial Review | Page 22

AGRIBEL HOLDINGS LTD FINANCIAL REVIEW 2021
2020 - Reconciliation of movements in lease liabilities
Balance at
the
Balance
beginning of
Adoption of
Accretion of
at the end
the year
standard
Additions 1
Transfer 2
interest
Payments
of the year
R ' m
R ' m
R ' m
R ' m
R ' m
R ' m
R ' m
GROUP - 2020 Buildings and improvements
-
10
29
-
2
( 7 )
34
Plant and equipment
-
1
6
-
-
( 2 )
5
Total
-
11
35
-
2
( 9 )
39
1 Additions relate to the business combinations of Falcon Agricultural Equipment ( Pty ) Ltd and KLK Landbou Ltd during the prior financial year . Refer to note
6.2 for more details regarding the acquisitions .
2 The transfer relates to the disposal of Senwes Limited`s equipment division to a separate legal entity , Senwes Equipment ( Pty ) Ltd , which resulted in a
common control transaction .
Current 10 Non-current 29 Total 39
The maturity analysis of lease liabilities are disclosed in note 24.1.3 . Refer to note 22.1 for the lease expenses relating to short-term leases , leases of low value assets and variable lease payments ( company ) recognised in profit or loss . The group has no expense relating to variable lease payments not included in the measurement of lease liabilities . The group has several lease contracts that include extension and termination options . These options are negotiated by management to provide flexibility in managing the leased-asset portfolio and align with the group ’ s business needs . Management exercises judgement in determining whether these extension and termination options are reasonably certain to be exercised . Set out below are the undiscounted potential future rental payments relating to periods following the exercise date of extension and termination options that are not included in the lease term :
GROUP
2021 R ' m
2020 R ' m
Within five years
More than five years
Total
Within five years
More than five years
Total
Extension options expected not to be exercised
14
20
34
17
48
65
Termination options expected to be exercised
9
-
9
5
-
5
Total potential future payments
23
20
43
22
48
70
20 AGRIBEL ANNUAL FINANCIAL REVIEW 2021 Agribel Holdings Limited Reg nr : 1996 / 017629 / 06