Guys,
How do i need to forecast Right of Use asset and Lease Liabilities on the Balance sheet? And does it impact my Free Cash Flow or my Net Cash Flow? Would love to hear from you.
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RoU Asset: BoP + Acquisition of RoU Assets - Depreciation = EoP
Lease Liability: BoP + Interest Expense - Cash Payment = EoP
Is it possible to retrieve the depreciation of the annual acount (Public)?
Yes - usually in that cash flow statement (or the notes thereof) they should provide of breakdown between depreciation attributable to PP&E and that attributable to RoU assets.
Thank you for your quick response.. Can i Assume acquisitions are zero when they say nothing about that? And how can I retrieve cash Payment?
Yes - would assume acquisitions are nil unless they state otherwise. The cash lease payments should be in CFF section of the cash flow statement (i.e. similar to as if you were displaying cash flows relating to debt repayments - since IFRS 16 leases are effectively debt-like items).
Thank you very much! last question.. What will be the impact on the FCF? Depreciation is added back?
Yes - the depreciation is added back as it is non-cash (just like regular depreciation). The cash payments are obviously still outflows. Hope that helps!
Thank you very much! Helped a lot! One more question.. Can we count Right of use asset as operating capital? Or is it a Non operating asset? I need it for my restructured Balance sheet
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