Notes to the group financial statements l Note 6.6

6.6 Finance lease commitments
 

Assets held under finance leases are capitalised at the lower of the fair value of the leased asset and the estimated present value of the minimum lease payments at the inception of the lease. The corresponding liability to the lessor, net of finance charges, is included in the statement of financial position under other non-current/current liabilities. Each lease payment is allocated between the liability and finance charges. Finance charges, which represent the difference between the total lease commitments and fair value of the assets acquired, are charged to profit or loss over the term of the relevant lease so as to produce a constant periodic rate of interest on the remaining balance of the obligation for each accounting period.

In all significant finance lease arrangements in place during the period, the group acted as the lessee.

At the reporting date, the group had outstanding commitments under non-cancellable finance leases which fall due as follows:

   Minimum 
lease 
payments 
Rm 		       Future 
finance 
charges 
Rm 		       Present 
value 
Rm 		   
2017                         
Current                         
Not later than one year    85          (31)         54    
Non-current (note 6.2) 809        (164)       645    
Later than one year but no later than five years  361        (95)       266    
Later than five years  448        (69)       379    
   894        (195)       699    
2016                         
Current                         
Not later than one year  86        (33)       53    
Non-current (note 6.2) 871        (198)       673    
Later than one year but no later than five years  407        (118)       289    
Later than five years  464        (80)       384    
   957        (231)       726    
 

Notes to the group financial statements l Note 6.6