Annual Report 2014 | Suomeksi |

36 Leasing

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Accounting policies + -
Finance leases
Leases of property, plant and equipment, where the Group has substantially all the risks and rewards of ownership, are classified as finance leases. Finance leases are capitalised at the commencement of the lease term at the lower of the fair value of the leased property and the present value of the minimum lease payments determined at the inception of the lease. Each lease payment is allocated between the reduction of the outstanding liability and the finance charges. The corresponding rental obligations, net of finance charges, are included in the long‑term or short‑term interest‑bearing liabilities according to their maturities. The interest element of the finance cost is charged to the income statement over the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The property, plant and equipment acquired under finance leases are depreciated over the shorter of the useful life of the asset or the lease term.
Operating leases
Leases of property, plant and equipment, where the Group does not have substantially all of the risks and rewards of ownership are classified as operating leases. Payments made under operating leases are recognised in the income statement as costs on a straight‑line basis over the lease term.
Payments received under operating leases where the Group leases out fixed assets are recognised as other income in the income statement.
36.1 Leases as a lessor
Operating leases
The operating rental income recognised in income statement was EUR 1 million (2013: 1).
Future minimum lease payments receivable on operating leases
EUR million 2014 2013
Not later than 1 year 2 6
Later than 1 year and not later than 5 years 4 1
Later than 5 years 1 2
Total 8 9
Assets leased out by operating lease agreements
EUR million 2014 2013
Acquisition cost 4 4
Accumulated depreciation at 1 January ‑1 ‑1
Depreciation charge for the year 0 0
Total 3 2
Finance leases
Fortum does not have material finance lease arrangements where where the Group is leasing out assets.
36.2 Leases as lessee
Operating leases
Fortum leases office equipment and cars under various non‑cancellable operating leases, some of which contain renewal options. The future costs for non‑cancellable operating lease contracts are stated below. Lease rental expenses amounting to EUR 16 million (2013: 28) are included in the income statement in other expenses. Future minimum lease payments include land leases with long lease periods.
Future minimum lease payments on operating leases
EUR million 2014 2013
Not later than 1 year 24 27
Later than 1 year and not later than 5 years 43 47
Later than 5 years 76 108
Total 142 181
Finance leases
Fortum does not have material finance lease arrangements where the Group is leasing in assets.

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