Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 363

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 363
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ognition of the drawn down amount, however we recognised an

accounting loss on modification of US$ 123 million related to changes other than the benchmark transition and capitalised transaction costs

incurred of US$ 50 million.

| Annual Report on Form 20-F 2024 | 200 | riotinto.com |

Financial statements | Notes to the consolidated financial statements

21 Leases Recognition and measurement IFRS 16 applies to the recognition, measurement, presentation and disclosure of leases. Certain leases are exempt from the standard, including

leases to explore for or use minerals, oil, natural gas and similar non-regenerative resources. We apply the scope exemptions in paragraphs 3(e) and

4 of IFRS 16 and do not apply the standard to leases of any assets which would otherwise fall within the scope of IAS 38 “Intangible Assets”.

A significant proportion of our lease arrangements relate to dry bulk vessels and office properties. Other leases include land and non-mining

rights, warehouses, ports, equipment and vehicles.

We recognise all lease liabilities and corresponding right-of-use assets on the balance sheet, with the exception of short-term (12 months or

fewer) and low-value leases, where payments are expensed as incurred. Lease liabilities are recorded at the present value of fixed payments;

variable lease payments that depend on an index or rate; amounts payable under residual value guarantees; and extension options expected to

be exercised. Where a lease contains an extension option that we can exercise without negotiation, lease payments for the extension period are

included in the liability if we are reasonably certain that we will exercise the option. Variable lease payments not dependent on an index or rate

are excluded from the calculation of lease liabilities at initial recognition. Payments are discounted at the incremental borrowing rate of the

lessee, unless the interest rate implicit in the lease can be readily determined. For lease agreements relating to vessels, ports and properties,

non-lease components are excluded from the projection of future lease payments and recorded separately within operating costs as services

are being provided. The lease liability is measured at amortised cost using the effective interest method. The right-of-use asset arising from a

lease arrangement at initial recognition reflects the lease liability, initial direct costs, lease payments made before the commencement date of

the lease, and capitalised provision for dismantling and restoration of the underlying asset, less any lease incentives.

We recognise depreciation on right-of-use assets and interest on lease liabilities in the income statement over the lease term. Repayments