10.2 Right-of-use assets
|Buildings||Machinery and equipment||Other tangible fixed assets||Total RoU assets|
|€ x 1,000||€ x 1,000||€ x 1,000||€ x 1,000|
|Right-of-use assets at 1 January 2020||22,176||994||6,626||29,796|
|Depreciation for the period||-6,006||-375||-3,378||-9,759|
|Reassessment of lease liabilities and lease modifications||3,165||-121||-494||2,550|
|Right-of-use assets at 1 January 2021||20,981||751||6,326||28,058|
|Depreciation for the period||-6,185||-276||-3,136||-9,598|
|Reassessment of lease liabilities and lease modifications||709||-52||-568||89|
|Right-of-use assets at 31 December 2021||23,180||624||5,429||29,234|
Lease liabilities are disclosed in note 9.1.3.
Accounting estimates and judgement
At the inception of a contract, Accell Group assesses whether a contract is, or contains, a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for a consideration. Accell Group has elected not to separate non-lease components and account for lease and non-lease components as a single lease component.
Right-of-use assets are depreciated to the earlier of the end of the useful life of the asset or the lease term using the straight-line method as Accell Group believes that this most closely reflects the expected consumption pattern of the future economic benefits. The lease term includes periods covered by an option to extend or to terminate early if Accell Group is reasonably certain to exercise that option.
A right-of-use asset and a lease liability are recognized on the lease commencement date. The right-of-use asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made on or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset. The assets are depreciated over the lease term which currently varies from two to ten years. Right-of-use assets are tested for impairment.