for the year ended 30 June 2022 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 84 Westgold Resources Limited Annual Report 2022 19. RIGHT-OF-USE ASSETS Group as a lessee AASB 16 Leases requires the recognition of right-of-use assets for the remaining term of the current leases for office premises and the warehouse facility, as well as the power stations at the various mine sites. The Group has lease contracts for various items of mining equipment, motor vehicles and buildings used in its operations. Leases of mining equipment generally have lease terms between three and seven years, while motor vehicles and buildings generally have lease terms between three and five years. The Group also has certain leases of assets with lease terms of 12 months or less and leases of office equipment with low value. The Group applies the short-term lease and lease of low-value assets recognition exemptions for these leases. Set out below are the carrying amounts of right-of-use assets recognised and the movements during the period: Power Stations Premises Mining Equipment Total As at 1 July 2021 4,399,668 2,033,218 826,001 7,258,887 Additions 8,632,818 3,494,392 194,339 12,321,549 Disposals – – – – Depreciation expense (7,282,955) (924,880) (557,899) (8,765,734) As at 30 June 2022 5,749,531 4,602,730 462,441 10,814,702 Set out below are the carrying amounts of lease liabilities (included under interest-bearing loans and borrowings) and the movements during the period: 2022 2021 As at 1 July 7,258,887 11,942,577 Additions 12,321,549 3,322,262 Disposals – (7,032) Accretion of interest 271,572 347,136 Payments (9,037,306) (8,346,056) As at 30 June 10,814,702 7,258,887 The following are the amounts recognised in profit or loss: Depreciation expense for right-of-use assets Included in cost of sales 8,249,706 7,482,892 Included in administration expenses (refer to Note 7) 516,028 516,028 Interest expense on lease liabilities 271,572 347,136 Less interest expense capitalised to qualifying asset (158,195) (347,136) Total amount recognised in profit or loss 8,879,111 7,998,920 The interest expense of these lease liabilities has been capitalised to the qualifying assets.
RkJQdWJsaXNoZXIy MjE2NDg3