Right of use asset & Net Debt Bridge
Should "right of use assets", be included in the net debt bridge? I know lease liabilities should be included, so was wondering if they are also included?
Some help please
Should "right of use assets", be included in the net debt bridge? I know lease liabilities should be included, so was wondering if they are also included?
Some help please
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Right-of-use assets are to be included under Tangible long-term assets (PP&E). The logic goes as this: Because we're classifying lease liabilities as debt, we've to balance the Debt/EBITDA (Leverage) figure. Debt as you see increases, now EBITDA has to increase to bring the balance -- This comes from the adding back of Depreciation of Right-of-use-assets + Interest payments on lease liabilities.
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