110 Huawei Investment & Holding Co., Ltd.
The increases (decreases) in relevant statement of financial position items on transition is summarised below:(CNY million) January 1, 2019
Right-of-use assets 14,149
Long-term leasehold prepayments (6,896)
Lease liabilities 7, 303
Other assets (276)
Other liabilities (326)Under the transition methods chosen, there is no effect on equity from the initial application of IFRS 16 at the
transition date.When measuring lease liabilities for leases that were classified as operating leases, the Group discounted lease
payments using the incremental borrowing rates applicable to economic environments where the group entities
operated at January 1, 2019. The weighted-average of the incremental borrowing rates applied was 4.75%.A reconciliation of the undiscounted operating lease commitment at December 31, 2018 and lease liabilities
recognised in the consolidated statement of financial position at transition date is presented below:(CNY million)
Operating lease commitment at December 31, 2018 7,9 4 4
Recognition exemption:- Leases with remaining lease term of less than 12 months (557)
Undiscounted lease liabilities 7, 3 87
Discounted using the incremental borrowing rate at January 1, 2019 6,640
Other differences at transition date 663
Lease liabilities recognised at January 1, 2019 7, 3 03