Leases

12 Months Ended

Dec. 31, 2019

Disclosure of leases [text block] [Abstract]

Disclosure of leases [text block]

Note 14 - Leases

As set out in Note 3.7, as from January 1, 2018, the Group early applies IFRS 16, Leases. Under the lease agreements, the Group leases mainly cellular communications sites, structures (including offices, warehouses, communication rooms, and points of sale), and vehicles.

A. Right of use asset

	Communications sites			Buildings			Vehicles			Total
	NIS			NIS			NIS			NIS
Cost
Balance as at January 1, 2018		809			538			173			1,520
Additions*		159			15			146			320
Derecognition for terminated agreements		(45	)		(9	)		(11	)		(65	)
Changes in agreements (mainly extension of the agreement periods) and revaluation		43			81			(22	)		102
Balance as at December 31, 2018		966			625			286			1,877
Additions*		146			34			28			208
Derecognition for terminated agreements		(71	)		(13	)		(27	)		(111	)
Balance as at December 31, 2019		1,041			646			287			1,974
Amortization and impairment losses
Balance as at January 1, 2018		-			-			-			-
Amortization for the year		190			120			113			423
Derecognition for terminated agreements		(18	)		(4	)		(9	)		(31	)
Changes in agreements and other		(3	)		(1	)		(18	)		(22	)
Impairment loss		-			-			3			3
Balance as at December 31, 2018		169			115			89			373
Amortization for the year		185			120			110			415
Derecognition for terminated agreements		(65	)		(5	)		(25	)		(95	)
Changes in agreements and other		(4	)		(2	)		(21	)		(27	)
Impairment loss (see Note 9)		82			45			(1	)		126
Balance as at December 31, 2019		367			273			152			792
Carrying amount
January 1, 2018		809			538			173			1,520
December 31, 2018		797			510			197			1,504
December 31, 2019		674			373			135			1,182

* Additions for new agreements and amendments to existing agreements

B. Liability for a lease

	Communications sites			Buildings			Vehicles			Total
	NIS			NIS			NIS			NIS
Balance as at January 1, 2018		809			538			188			1,535
Additions *		204			101			141			446
Disposals		(27	)		(5	)		(2	)		(34	)
Financing expenses for lease liabilities		14			9			3			26
Payments for a lease		(190	)		(124	)		(108	)		(422	)
Balance as at December 31, 2018		810			519			222			1,551
Additions *		150			32			53			235
Disposals		(6	)		(8	)		(2	)		(16	)
Financing expenses for lease liabilities		16			9			4			29
Payments for a lease		(180	)		(124	)		(110	)		(414	)
Balance as at December 31, 2019		790			428			167			1,385
Carrying amount as at December 31,2018
Current maturities of a lease liability		203			124			118			445
Long-term liabilities for a lease		607			395			104			1,106
Total balance as at December 31, 2018		810			519			222			1,551
Carrying amount as at December 31,2019
Current maturities of a lease liability		197			123			96			416
Long-term liabilities for a lease		593			305			71			969
Total balance as at December 31, 2019		790			428			167			1,385

* Additions for new agreements and amendments to existing agreements

1. Analysis of repayment dates of liabilities for the Group’s lease (including principal and interest to be paid)

Expected payment dates	December 31, 2019
	NIS
Up to one year		419
1-5 years		743
More than five years		320
Total		1,482

2. Options to terminate or extend a lease

In most of its leases, the Group assumed that it is reasonably certain that the extension option in the agreements will be exercised, therefore there are no material liabilities in respect of leases that were not presented in the financial statements.

Most of the lease agreements include an option to cancel the agreement with notice and/or payment of a penalty as set out in the agreements. The Group assumed that it is reasonably certain that the cancellation options will not be exercised.

3. Information about material lease agreements not yet included in measurement of the lease liability

In December 2018, Bezeq entered into an agreement to lease part of an office and commercial building. The agreement is for ten years and includes three option periods up to 24 years and 8 months, as from January 1, 2021. The annual rent amounts to NIS 20.

The right-of-use asset and liability for the lease will be recognized in the financial statements at the date ownership of the asset is transferred, which is expected to be at the end of 2020. Under the agreement, there will be an option of bringing forward the beginning of the lease up to three months before this date.