Management Report 2020
-
Management Report 2020
SLC
Agrícola
being evaluated. In determining the fair value of investment properties, the Com-
pany adopts "Level 3".
Revenue from rental of investment property | Revenue from rental of investment
property is recognized in income on a straight-line basis over the lease term. Lease
incentives granted are recognized as an integral part of total rental income, for
the duration of the lease. Rental income from other properties is recognized as
operating income. In 2020, rental revenue totaled R$7,587 (R$5,457 in 2019).
13. Leasing operations
The movement of the right-of-use assets in the period ended December 31, 2020
is shown below:
The change in lease liabilities in the period ended December 31, 2020 is shown below:
Parent Company
Balance at 12/31/2019
Additions of new contracts and remeasurement
Realization of the APV on lease liabilities
lease liability
(-) Payments (*)
Balance at 12/31/2020
Liabilities current
Intercompany (note 16.a)
Liabilities non-current
Third-party
Intercompany (note 16.a)
Third-party
Consolidated
1,497,456
629,716
1,242,336
374,797
154,759
(279,169)
61,106
(131,335)
2,615,382
934,284
355,413
162,258
204,525
150,888
162,258
2,259,969
772,026
1,517,643
742,326
772,026
Parent Company
Consolidated
Balance at 12/31/2019
Remeasurement
Additions of new contracts
(-) Amortization of the right to use asset
1,388,969
1,175,161
67,277
(168,153)
Balance at 12/31/2020
2,463,254
Cotton rental
Culture lands
16,809
2,423,168
555,031
314,739
60,163
(101,437)
828,496
21,766
782,091
Leasing of buildings
986
Machinery
15,190
Rental cars
7,101
2,463,254
15,190
8,463
828,496
Amortization of right of use in the year:
Cotton rental
(1,530)
Culture lands
(161,348)
(2,491)
(93,522)
Leasing of buildings
(612)
Machinery
(3,301)
Rental cars
(1,362)
Total period
(168,153)
(612)
(3,301)
(1,511)
(101,437)
1 The amount of R$ 1,701 as payment for leases was without cash effect.
986
Of the contracts that were included in IFRS 16/ CPC 06(R2), the Company's man-
agement considered as a leasing component only the fixed minimum amount for
the measurement of the lease liability. The measurement of the lease liability cor-
responds to the total of future rent and lease payments, net of tax effects, adjusted
to present value, considering the nominal discount rate.
The incremental rate of funding used by the Company for discount is composed
by the "CDI / Pre weighted curve", added to the Company's credit risk and to a
risk spread of the underlying asset.
It should be noted that the land leasing contracts are indexed by the price of the
soybean sack in the region of each production unit, and the values of the right of
use and lease liabilities are converted into Reais using the quotation of the soy-
bean in each region. The amounts of the payments may suffer significant variation
until the moment of payment, due to the change in the value of the soybean mar-
ket in each region.
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