4.9.1.3
Lease liabilities

     
  2020 2019
  € x 1,000 € x 1,000
Lease liabilities non-current 20,158 22,240
Lease liabilities current 8,799 7,983
Lease liabilities at 31 December
28,957
30,223
 
Lease liabilities at 1 January 30,223 32,618
Lease payments -10,149 -10,401
Divestments as a result of outgoing business combinations - -142
Divestments from discontinuation of business - -2,396
Additions 5,844 5,694
Reassessment of lease liabilities and lease modifications 2,542 4,088
Unwind of the discount on the lease liabilities 521 618
Effect of foreign exchange rate changes 442 174
Currency translation -465 -31
Lease liabilities at 31 December
28,957
30,223

 

The corresponding right-of-use assets are disclosed in note 4.10.2.

The cash flows from the following items are not included in the lease liabilities at 31 December:

     
  2020 2019
  € x 1,000 € x 1,000
Extension options 4,383 4,383
Termination options -1,624 -1,624
Leases not yet commenced but to which Accell Group is committed 77 418

 

The following costs related to leases are included in the consolidated income statement:

    Continued operations Discontinued operations Total
  2020 2019 2019 2019
  € x 1,000 € x 1,000 € x 1,000 € x 1,000
Depreciation of right-of-use assets (depreciations) 9,756 9,301 893 10,194
Unwind of the discount on the lease liabilities (net finance cost) 521 549 69 618
Loss (gain) related to lease modifications (depreciations) -9 -17 -23 -40
Foreign exchange loss (gain) on lease liabilities (net finance cost) 442 174 - 174
Impairment of right-of-use assets (depreciations) - - - -
Short-term leases (other operating expenses) 1,372 1,682 -26 1,657
Leases of low-value assets (other operating expenses) 385 47 - 47
Total
12,466
11,737
913
12,650

 

Accounting estimates and judgements

Accell Group has elected not to separate non-lease components and account for the lease and non-lease components as a single lease component.
The lease term includes periods covered by an option to extend or to terminate early if Accell Group is reasonably certain to exercise that option. 
The incremental borrowing rate is determined each quarter based on current market interest rates per lease term and lease currency adjusted for Accell Group's annual budgeted loan spread, because all Accell Group financing is coordinated centrally.

Accounting policy

A right-of-use asset and a lease liability are recognised at the lease commencement date. The lease liability is initially measured at the present value of the lease payments that have not been paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, Accell Group’s incremental borrowing rate. Generally, the incremental borrowing rate (IBR) is used as the discount rate. The lease liability is subsequently measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from among other things a change in an index or rate, extension or termination option. When the lease liability is remeasured, a corresponding adjustment is made to the carrying amount of the right-of-use asset or if the carrying amount of the right-of-use asset is reduced to zero an impairment loss is recognised in profit or loss.