Interfront 2023 Annual Report

International Frontier Technologies SOC Ltd Trading as Interfront Financial Statements for the year ended 31 March 2023 110 INTERFRONT ANNUAL REPORT 2023 Summary of Significant Accounting Policies 1.8 Leases (continued) Minimum lease payments are apportioned between the finance charge and reduction of the outstanding liability. The finance charge is expensed in each period. Operating leases – lessor Operating lease revenue is recognised as revenue on a straight‑line basis over the lease term. Initial direct costs incurred in negotiating and arranging operating leases are added to the carrying amount of the leased asset and recognised as an expense over the lease term on the same basis as the lease revenue. The aggregate cost of incentives is recognised as a reduction of rental revenue over the lease term on a straight‑line basis. The aggregate benefit of incentives is recognised as a reduction of rental expense over the lease term on a straight‑line basis. Income for leases is disclosed under revenue in the statement of financial performance. Operating leases – lessee Operating lease payments are recognised as an expense on a straight‑line basis over the lease term. The difference between the amounts recognised as an expense and the contractual payments are recognised as an operating lease asset or liability. 1.9 Impairment of cash‑generating assets Identification Theentity assesses at each reportingdatewhether there is any indication that acash‑generating asset may be impaired. If any such indication exists, the entity estimates the recoverable amount of the asset. 1.10 Impairment of non‑cash‑generating assets Identification The entity assesses at each reporting date whether there is any indication that a non‑cash‑generating asset may be impaired. If any such indication exists, the entity estimates the recoverable service amount of the asset.

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