The Group has entered into various operating lease agreements in respect of premises. Leases on premises are contracted for periods of between 10 and 20 years with renewal options for a further 10 to 20 years. Rentals comprise minimum monthly payments and additional payments based on turnover levels. Turnover rentals, where applicable, average 1.5% of turnover. Rental escalations vary but average 6.5% per annum. In terms of IAS 17, operating leases with fixed rental escalations are charged to the income statement on a straight-line basis. This results in the raising of a liability for future lease expenses and an asset for future lease income on the balance sheet. This liability and asset is reversed during the latter part of each lease term when the actual cash flow exceeds the income statement amounts.
24.1
Operating lease asset
At 1 March
10.9
5.9
Accrual for future lease income
8.4
5.0
At 28 February
19.3
10.9
At 28 February future minimum rentals receivable from non-cancellable sublease contracts amount to:
Total future cash flows
673.8
248.0
Operating lease asset
(19.3)
(10.9)
Total operating lease income receivable
654.5
237.1
24.2
Operating lease liability
At 1 March
626.9
584.3
Accrual for future lease expenditure
31.6
42.6
At 28 February
658.5
626.9
At 28 February future non-cancellable minimum lease rentals are payable during the following financial years:
