Company: BCS
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0000312069-25-000114
Chunk: 584

Company: BARCLAYS PLC
Filing Date: 2025-02-13
Form: 20-F
Chunk 584
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 independent valuers. 20 Leases

Accounting for leases

When the Group is the lessee, it is required to recognise both:

▪ a lease liability, measured at the present value of remaining cash flows on the lease

▪ a right of use (ROU) asset, measured at the amount of the initial measurement of the lease liability, plus any lease payments made

prior to commencement date, initial direct costs, and estimated costs of restoring the underlying asset to the condition required by

the lease, less any lease incentives received.

Subsequently the lease liability will increase for the accrual of interest, resulting in a constant rate of return throughout the life of the

lease, and reduce when payments are made. The right of use asset will amortise to the income statement over the life of the lease.

When the lease liability is remeasured, a corresponding adjustment is made to the carrying amount of the ROU asset, or is recorded in

the income statement if the carrying amount of the ROU asset has been reduced to nil.

On the balance sheet, the ROU assets are included within property, plant and equipment and the lease liabilities are included within

other liabilities .

The Group applies the recognition exemption in IFRS 16 for leases with a term not exceeding 12 months. For these leases the lease

payments are recognised as an expense on a straight-line basis over the lease term unless another systematic basis is more

appropriate.

When the Group is the lessor, the lease must be classified as either a finance lease or an operating lease. A finance lease is a lease which

confers substantially all the risks and rewards of the leased assets on the lessee. An operating lease is a lease where substantially all of

the risks and rewards of the leased asset remain with the lessor.

As a lessor

Finance lease receivables are included within loans and advances at amortised cost.

The following table sets out a maturity analysis of lease receivables, showing the lease payments to be received after the reporting

date.

|                        |                                       2024 |                      |                                                |                            |                                       2023 |                      |                                                |                            |
|                        | Grossinvestment infinance leasereceivables | Future financeincome | Present valueof minimumleasepaymentsreceivable | Unguaranteedresidualvalues | Grossinvestment infinance leasereceivables | Future financeincome | Present valueof minimumleasepaymentsreceivable | Unguaranteedresidualvalues |
|                        |                                         £m |