Barclays 2012 Annual Report Download - page 279

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25 Operating leases
Accounting for operating leases
The Group applies IAS 17 Leases, for operating leases. An operating lease is a lease where substantially all of the risks and rewards of the
leased assets remain with the lessor. Where the Group is the lessor, lease income is recognised on a straight-line basis over the period of the
lease unless another systematic basis is more appropriate. The Group recognises leased assets on balance sheet within property, plant and
equipment.
Where the Group is the lessee, rentals payable are recognised as an expense in the income statement on a straight-line basis over the lease
term unless another systematic basis is more appropriate.
Operating lease receivables
The Group acts as lessor, whereby items of plant and equipment are purchased and then leased to third parties under arrangements qualifying as
operating leases. The future minimum lease payments expected to be received under non-cancellable operating leases as at 31 December 2012
was £4m (2011: £14m).
Operating lease commitments
The Group leases various offices, branches and other premises under non-cancellable operating lease arrangements. With such operating lease
arrangements, the asset is kept on the lessor’s balance sheet and the Group reports the future minimum lease payments as an expense over the
lease term. The leases have various terms, escalation and renewal rights. There are no contingent rents payable.
Operating lease rentals of £622m (2011: £659m) have been included in administration and general expenses.
The future minimum lease payments by the Group under non-cancellable operating leases are as follows:
2012 2011
Property
£m
Equipment
£m
Property
£m
Equipment
£m
Not more than one year 695 13 585 12
Over one year but not more than five years 1,290 3 1,673 2
Over five years 2,768 – 2,830 –
Total 4,753 16 5,088 14
Total future minimum sublease payments to be received under non-cancellable subleases as at 31 December 2012 was £22m (2011: £121m).
barclays.com/annualreport Barclays PLC Annual Report 2012 I 277