Barclays 2014 Annual Report Download - page 304

302 I Barclays PLC Annual Report 2014 barclays.com/annualreport
Notes to the financial statements
Non-current assets and other investments
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 holds the 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 was £1m (2013: £3m).
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 £594m (2013: £645m) have been included in administration and general expenses.
The future minimum lease payments by the Group under non-cancellable operating leases are as follows:
2014 2013
Property
£m
Equipment
£m
Property
£m
Equipment
£m
Not more than one year 403 41 567 34
Over one year but not more than five years 1,147 106 1,220 124
Over five years 2,036 – 2,441 8
Total 3,586 147 4,228 166
Total future minimum sublease payments to be received under non-cancellable subleases was £99m (2013: £108m).