| Leasing arrangements – lessee |
| 13. |
Leasing arrangements – lessee |
| |
a) |
The Group leases various assets including buildings (office and warehouse) and business vehicles. Rental contracts are typically made for periods of 1 to 5 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes. |
| |
b) |
Short-term leases with a lease term of 12 months or less comprise rental of office. Low-value assets comprise rental of office equipment. |
| | c) | The carrying amount of right-of-use assets and the amortization charge are as follows: |
| |
|
Carrying amount |
|
|
| |
|
December 31,
2024 |
|
|
December 31,
2023 |
|
|
| Buildings (Office and warehouse) |
|
$ |
505,345 |
|
|
$ |
47,992 |
|
|
| Transportation equipment (Business vehicles) |
|
|
- |
|
|
|
5,044 |
|
|
| |
|
$ |
505,345 |
|
|
$ |
53,036 |
|
|
| |
|
Depreciation charge |
|
| |
|
Year ended
December 31,
2024 |
|
|
Year ended
December 31,
2023 |
|
|
Year ended
December 31,
2022 |
|
| Buildings (Office and warehouse) |
|
$ |
161,794 |
|
|
$ |
9,314 |
|
|
$ |
12,774 |
|
| Transportation equipment (Business vehicles) |
|
|
4,712 |
|
|
|
6,623 |
|
|
|
27,640 |
|
| |
|
$ |
166,506 |
|
|
$ |
15,937 |
|
|
$ |
40,414 |
|
| | d) | For the years ended December 31, 2024 and 2023, the additions to right-of-use assets were $618,815 and $52,355, respectively. |
| | e) | The information on profit and loss accounts relating to lease contracts is as follows: |
| | |
Year ended
December 31,
2024 | | |
Year ended
December 31,
2023 | | |
Year ended
December 31,
2022 | |
| Items affecting profit or loss | |
| | |
| | |
| |
| Interest expense on lease liabilities | |
$ | 19,501 | | |
$ | 346 | | |
$ | 1,219 | |
| Expense on short-term lease contracts | |
| 270,579 | | |
| 171,999 | | |
| 13,602 | |
| Expense on leases of low-value assets | |
| 5,324 | | |
| 6,661 | | |
| 19,227 | |
| Loss on lease modification | |
| - | | |
| - | | |
| 48,448 | |
| | f) | For each of the years ended December 31, 2024, 2023 and 2022, the Group’s total cash outflow for leases were $471,058, $195,350 and $124,597, respectively. |
|