Machinery and equipment
Other fixed assets
Book value 1 January 2019
Recognition of right-of-use assets on initial application of IFRS 16
Exchange rate differences
Acquisition of group companies
Net movement in book value
Book value 31 December 2019
The maturity of the lease liabilities is as follows.
As at 31-12-2019
As at 31-12-2018
Total lease liabilities
The comparative 2018 lease liabilities comprise finance lease liabilities accounted for under the IAS 17 lease accounting standard.
Corbion's main leases are contracts for office locations, warehouses, and leased vehicles (the main category in Other fixed assets). Some property leases contain extension options exercisable by Corbion. Corbion assesses at the lease commencement date whether it is reasonably certain that the extension options will be exercised. Corbion reassesses whether it is reasonably certain that the extension options will be exercised if there is a significant event or significant change in circumstances within its control. As at 31 December 2019, potential future cash outflows of € 70.5 million (undiscounted) have not been included in the lease liability because it is not reasonably certain that the leases will be extended. Lease payments are in substance fixed and the group had no leases with variable lease payments.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the group, the lessee’s incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security, and conditions.