DSV Annual Report 2022
62
DSV Annual Report 2022
Consolidated financial statements 2022
= III
3.6 Leases continued
—
The lease liability is measured at amortised cost using the effective interest
method and adjusted for any remeasurements or modifications made to
the contract.
Right-of-use assets and lease liabilities are not recognised for low value
lease assets or leases with a lease term of 12 months or less. These are
recognised as an expense on a straight-line basis over the term of the lease.
Any service elements separable from the lease contract are also accounted
for following the same principle.
Extension options are only included in the lease term if extension of the lease
is reasonably certain. The majority of extension and termination options held
are exercisable only by the Group and not by the respective lessor.
Management judgements and estimates
In accounting for lease contracts, various judgements are applied in deter-
mining right-of-use assets and lease liabilities. Judgements include assess-
ment of lease periods, utilisation of extension options and applicable dis-
count rates.
Leases
Right-of-use assets classified as land and buildings mainly relate to leases
of warehouses, terminals and office buildings, whereas assets recognised as
other plant and operating equipment mainly relate to leases of trailers,
trucks, company cars, forklifts, IT hardware and other office equipment.
Land and building leases normally have a lease term of up to ten years,
whereas leases of other plant and operating equipment normally have a
lease term of up to five years.
Land and buildings may include extension options with the intention of se-
curing flexibility in the lease - however, any leasing period beyond the nor-
mal ten years expected at the initiation of the lease will normally be reflect-
ed in the contractual lease term agreed.
Analysis of lease liabilities showing the remaining contractual maturities is
provided in the following table:
Contractual maturity
of lease liabilities (DKKm)
2022
2021
0-1 year
1-5 years
4,302
3,692
11,059
9,835
5,917
4,803
> 5 years
Total undiscounted lease
liabilities at 31 December
21,278
18,330
Current/non-current classification (discounted)
Current
Non-current
3,577
13,190
3,440
11,848
The profit or loss and cash flow impact of leases recognised for the year
are specified below:
Right-of-use assets (DKKm)
Carrying amount at 1 January
Additions from business combinations
Land and
buildings
2022
Other
plant and
operating
equipment
2021
Lease effects recognised in profit
or loss and cash flow (DKKm)
2022
2021
Total
Land and
buildings
Other
plant and
operating
equipment
Profit or loss
Interest expenses on lease liabilities
727
495
Total
Expenses relating to short-term leases
Expenses relating to leases of low-value assets
563
457
635
308
13,121
588
13,709
10,146
965
11,111
2,367
8
2,375
Additions
Disposals
Depreciation for the year
4,970
(252)
75
5,045
3,488
227
3,715
(40)
(292)
(336)
(224)
Currency translation
(3,549)
(5)
(212)
(2)
(3,761)
(7)
(2,757)
(388)
213
(560)
(3,145)
213
Expenses relating to variable lease payments not
included in the measurement of lease liabilities
Gains from sale and leaseback transactions
Income from subleasing of right-of-use assets
97
103
109
56
14
Cash flow
Carrying amount at 31 December
14,285
409
14,694
13,121
588
13,709
Total cash outflow for leases
4,461
3,655View entire presentation