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6 Leases

Swisscom applied IFRS 16 “Leases” as at 1 January 2019 and elected to apply the modified retroactive approach for the first-time application. With this approach, right-of-use assets and lease liabilities were recognised in the same amount in the balance sheet. For further information, see Note 1, change in accounting policies.

The leases of Swisscom comprise, in particular, the rental of operation and office buildings, of antenna sites and of network infrastructure. The Italian subsidiary, Fastweb, procures various access services from other fixed-network operators for the use of access lines to the end customer. Under IFRS 16 part of these access services is classified as a lease. The value of the individual access lines fulfils the criterion as an asset of low value. Swisscom will apply the low value exemption of IFRS 16 for these leases. Accordingly, no right-of-use assets and lease liabilities will be recognised for these access services, the costs of which will be reported as direct costs.

Rights of use

In CHF million   30.9.2019   1.1.2019
Land and buildings   1,589   1,570
Technical installations and network infrastructure   144   111
Other right-of-use assets   3   2
Net carrying amount of right-of-use assets   1,736   1,683

Lease liabilities

In CHF million   30.9.2019   1.1.2019
Land and buildings   1,604   1,586
Technical installations and network infrastructure   144   110
Other leases   3   2
Total lease liabilities   1,751   1,698
Thereof current lease liabilities   226   210
Thereof non-current lease liabilities   1,525   1,488

Lease expenses


In CHF million
  IFRS 16
1.1.–30.9.2019
  IAS 17
1.1.–30.9.2018
Depreciation of right-of-use assets   182  
Interest expense on lease liabilities   24  
Expenses from operating leases     150 1
Depreciation of assets under finance leases     25 2
Interest expense on finance lease liabilities     18
Expense from leases of low value assets   95 3  
1 Disclosed under indirect costs.
2 Disclosed under depreciation and amortisation of property, plant and equipment and intangible assets.
3 Disclosed under direct costs.