Company: OTSA
Filing Date: 2025-07-07
Form Type: F-1/A
Source: 0001213900-25-061733
Chunk: 304

Company: OTSAW Ltd
Filing Date: 2025-07-07
Form: F-1/A
Chunk 304
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useasset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, less any lease incentives received, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located. The right -of -useasset is subsequently depreciated using the straight -linemethod from the commencement date to the end of the lease term. When the lease transfers ownership of the underlying asset to the Group by the end of the lease term or the cost of the right -of -useasset reflects that the Group will exercise a purchase option, the right -of -useasset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property, plant and equipment. The right -of -useasset is also reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability, where applicable. Right -of -useassets are presented within “property, plant and equipment”. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the lessee’s incremental borrowing rate. The Group generally uses the incremental borrowing rate as the discount rate. To determine the incremental borrowing rate, the Group obtains a reference rate and makes certain adjustments to reflect the terms of the lease and the asset leased. F-20 OTSAW LIMITED AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 APRIL 2024 2.Summary of significant accounting policies (cont.) The lease payments included in the measurement of the lease liability comprise the following: •fixed payments, including in -substancefixed payments less any lease incentive receivable, •variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date, •amounts expected to be payable under a residual value guarantee, •the exercise price under a purchase option that the Group is reasonably certain to exercise, and •payments of penalties for terminating the lease if the Group is reasonably certain to terminate early and lease payments for an optional renewal period if the Group is reasonably certain to exercise an extension option. The lease liability is measured at amortised cost using the effective interest method. The