NOTES
Consolidated financial statements •81
SECTION 3: INVESTED CAPITAL ANDWORKING CAPITAL ITEMS, CONTINUED
3.2 PROPERTY, PLANTAND EQUIPMENT, CONTINUED
Operating leases
Land and
Plant and
DKKmillion
buildings
equipment
Total
Futureminimum lease payments on existing contracts at 31December
Within 1 year
303
23
326
Between 1- 5 years
826
27
853
After 5 years
371
1
372
Total 2014
1,500
51
1,551
Within 1 year
182
50
232
Between 1- 5 years
417
15
432
After 5 years
128
-
128
Total 2013
727
65
792
PANDORA has a large number of individually insignificant
leases.The leases aremainly for stores, offices and copy
machines etc.The increase in commitments in 2014 is
mainly related tonew owned and operated concept stores,
including the stores acquired fromUS jeweller Hannoush,
and the lease for a newDanish headquarters fromApril
2016.
Accounting policies
Property, plant and equipment is stated at cost, net of
accumulated depreciation and/or any accumulated
impairment losses. Depreciation is calculatedon a straight-
line basis over the estimateduseful life of the asset.
Leases
Thedeterminationofwhether an arrangement is, or
contains, a lease is basedon the substance of the
arrangement at the inception date: whether fulfilment of
the arrangement is dependent on the use of a specific asset
or the arrangement conveys a right touse the asset.
Operating lease payments are recognised as expenses
in the income statement on a straight-line basis over the
lease term.
