X5 Group (Пятерочка). Годовой отчет за 2021 год - часть 27

FINANCIAL STATEMENTS

210

NoteS to the CoNSolidated FiNaNCial StatemeNtS

NoteS to the CoNSolidated 

FiNaNCial StatemeNtS

for the year ended 31 December 2021 

(expressed in millions of Russian Roubles,  
unless otherwise stated)

11

leases

The rental income from operating leases recognised 
in the consolidated statement of profit or loss for the 
year ended 31 December 2021 amounted to RUB 7,007 
(2020: RUB 6,284) (Note 26). The contingent rents 
recognised in the consolidated statement of profit or 
loss in the year ended 31 December 2021 amounted to 
RUB 202 (2020: 276).

Income from subleasing right-of-use assets under 
operating lease agreement for the year ended 
31 December 2021 amounted to RUB 2,618 (2020: 
RUB 2,464).

impairment test

At the end of 2021 management performed an 
impairment test of right-of-use assets. The evaluation 
performed and reasons for it are consistent with the 
approach for impairment testing of Property, Plant and 
Equipment (Note 10).

The expenses related to short-term leases for the 
year ended 31 December 2021 amounted to RUB 97 
(31 December 2020: 15). The expense related to variable 
lease payments not included in the measurement of 
lease liabilities for the year ended 31 December 2021 
amounted to RUB 14,444 (31 December 2020: 11,271). 
Variable lease payments are mainly linked to sales 
generated from a store. Variable payment terms are used 
for a variety of reasons, including minimising the fixed 
costs base. 

The total cash outflow for leases for the year ended 31 
December 2021 amounted to RUB 119,238 (2020: RUB 
108,737).

Maturity analysis of the lease liabilities is disclosed in the 
Note 31.

As at 31 December 2021 potential future cash outflows 
of RUB 3,134 (undiscounted) (31 December 2020: 3,057) 
have not been included in the lease liability because it 
was assessed reasonably certain that the leases will be 
terminated. 

GRoUP aS a leSSoR

The lease arrangements are operating leases, the 
majority of which are short-term. The future minimum 
lease and sublease payments receivable under 
operating leases were as follows: 

31 deCemBeR 

2021

31 deCemBeR 

2020

Within 1 year

 2,928 

 2,863 

Between 1 and 2 years

 403 

984 

Between 2 and 3 years

 329 

733 

Between 3 and 4 years

 272 

571 

Between 4 and 5 years

 138 

397 

Later than 5 years

 418 

773 

TOTAL

 4,488 

6,321 

In an ordinary course of the business the Group 
constantly arranges for leases of new premises and 
land. As at 31 December 2021 and 31 December 2020 
the Group had a certain number of leases to which the 
Group was committed but the lease did not commence. 
The Group assesses that the amount of future cash 
outflows to which the lessee is potentially exposed is not 
significant.

In 2021 the Group completed a sale and leaseback 
transaction in respect of a store located in Saint-
Petersburg. The cash proceeds amounted to RUB 594 
recognised in the consolidated statement of cash 
flows and gain amounted to RUB 124 recognised in the 
consolidated statement of profit or loss for the year 
ended 31 December 2021. When measuring the lease 
liability, the Group included fixed lease payments per 
lease agreement and the estimate of variable payments 
calculated as a percentage of the expected revenue 
generated from the leased asset. The lease term of the 
leaseback was 12 years.

FINANCIAL STATEMENTS

211

NoteS to the CoNSolidated FiNaNCial StatemeNtS

NoteS to the CoNSolidated 

FiNaNCial StatemeNtS

for the year ended 31 December 2021 

(expressed in millions of Russian Roubles,  
unless otherwise stated)

12

investment  

properties

The Group held the following investment properties at 31 December 2021 and 31 December 2020: 

Cost

2021

2020

Cost at 1 January

 8,356

9,383

Disposals

(447)

(1,027)

Cost at 31 December

 7,909

8,356

Accumulated depreciation and impairment

Accumulated depreciation and impairment at 1 January 

(3,854)

(3,819)

Depreciation charge

(169)

(188)

Impairment charge

(65)

(16)

Reversal of impairment

 408

 66

Disposals

 232

103

Accumulated depreciation and impairment at 31 December

(3,448)

(3,854)

Net book value at 31 December

 4,461

4,502

Net book value at 1 January

 4,502

5,564

Depreciation charge, impairment charge and reversal 
of impairment are included in selling, general and 
administrative expenses in the consolidated statement 
of profit or loss for the years ended 31 December 2021 
and 31 December 2020.

The Group’s investment properties consist of land and 
buildings. Rental income from investment property 
amounted to RUB 1,140 (2020: RUB 1,235). Direct 
operating expenses incurred by the Group in relation 
to investment property amounted to RUB 796 (2020: 
RUB 821). There were no significant direct operating 
expenses incurred by the Group in relation to investment 
property that did not generate rental income. 

Management estimates that the fair value of investment 
property at 31 December 2021 amounted to RUB 6,700 
(31 December 2020: RUB 7,666). The fair value was 
estimated using market approach with key inputs being 
rent income rates and market value of comparable 
assets.

impairment test

At the end of 2021 management performed an 
impairment test of investment property. The evaluation 
performed and reasons for it are consistent with the 
approach for impairment testing of Property, Plant and 
Equipment (Note 10).

FINANCIAL STATEMENTS

212

NoteS to the CoNSolidated FiNaNCial StatemeNtS

NoteS to the CoNSolidated 

FiNaNCial StatemeNtS

for the year ended 31 December 2021 

(expressed in millions of Russian Roubles,  
unless otherwise stated)

13

Goodwill

Movements in goodwill arising on the acquisition of businesses at 31 December 2021 and 31 December 2020 are: 

Cost

2021

2020

Gross book value at 1 January

 171,202

 168,239

Acquisition of businesses (Note 7)

 1,118

 2,963

Disposal

(221)

 −

Gross book value at 31 December 

 172,099

 171,202

Accumulated impairment losses

Accumulated impairment losses at 1 January

(66,312)

(66,312)

Impairment charge

(980)

−

Disposal

 221

 −

Accumulated impairment losses at 31 December

(67,071)

(66,312)

Carrying amount at 1 January 

 104,890

 101,927

Carrying amount at 31 December

 105,028

 104,890

Goodwill imPaiRmeNt teSt 

For the purposes of impairment testing, goodwill is 
allocated to groups of cash-generating units (groups 
of CGUs) being store chains of each format and dark 
kitchens. This represents the lowest level within the 
Group at which the goodwill is monitored for internal 
management purposes.

The group of CGUs to which goodwill has been 
allocated is tested for impairment annually or more 
frequently if there are indications that the particular 
group of CGUs might be impaired. Goodwill is tested for 
impairment at the group of CGUs level by comparing 
carrying values of particular group of CGU assets 
including allocated goodwill to their value in use. The 
Karusel group of CGUs started reorganisation in 2019. 
The reorganisation is expected to be finalised in 2023. 
The reorganisation resulted in a transfer of goodwill to 
Perekrestok group of CGUs in amount of RUB 644 and 
impairment charge for the year ended 31 December 
2021 in amount of RUB 980. 

The Group analysed the potential impacts and effects 
of the COVID-19 pandemic, including the estimated 
impact on the macro economic environment. COVID-19 
pandemic did not negatively affect the overall Group’s 
performance during the reporting period as demand for 
food products remains stable.

FINANCIAL STATEMENTS

213

NoteS to the CoNSolidated FiNaNCial StatemeNtS

NoteS to the CoNSolidated 

FiNaNCial StatemeNtS

for the year ended 31 December 2021 

(expressed in millions of Russian Roubles,  
unless otherwise stated)

13

Goodwill

Goodwill imPaiRmeNt teSt (CoNtiNUed) 

 

Value in use

For items of land, buildings and construction in progress 
the discounted future cash flow approach is applied and 
covers a 10-year period from 2021 onwards. The Group 
believes that use of 10 year forecast better reflects 
expected future cash flows of its cash generating units 
due to cyclical nature of their renovation expenditures. 
The future cash flows are based on the current budgets 
and forecasts approved by the management. For the 
forecast period, the data of the strategic business 
plan are extrapolated based on the consumer price 
indices as obtained from external resources and key 
performance indicators inherent to the strategic plan. 
One of the main assumptions used for the forecast 
period is revenue growth being in the range from 4.00% 
to 7.86% in accordance with the internal forecasts 
based on budget and consumer price index projections 
(31 December 2020: 4.00% to 6.78%). For the years 
beyond the forecast period the long-term consumer 
price index forecast of 4.00% at 31 December 2021 
is used (31 December 2020: 4.00%). The projections 
are made in the functional currency of the Group’s 
entities, being Russian Rouble, on a pre-tax basis and 
discounted at the Group pre-tax weighted average 

cost of capital which is then adjusted to reflect the risks 
specific to the respective assets (cash-generating units 
(CGUs)) — 13.39% (31 December 2020: 12.14%). Inflation 
rates are in line with the consumer price index forecast 
published by the Ministry of Economic Development of 
Russian Federation. The Group’s management believes 
that all of its estimates are reasonable and consistent 
with the internal reporting and reflect management’s 
best knowledge.

The changes in assumptions applied in the model used 
for impairment testing do not indicate any trigger for 
impairment because the fair value less cost of disposal 
and the value in use are significantly higher than the 
carrying values of the cash generating unit assets.

The result of applying discounted cash flows model 
reflects expectations about possible variations in the 
amount and timing of future cash flows and is based on 
reasonable and supportable assumptions that represent 
management’s best estimate of the range of uncertain 
economic conditions. 

impairment test

The recoverable amount of the groups of CGUs 
calculated exceeds their carrying amounts and therefore 
no impairment was recognised for them during the year 
ended 31 December 2021 (year ended 31 December 
2020: Nil).

The allocation of carrying amounts of goodwill to each group of CGUs was as follows:

PyateRoChKa

PeReKReStoK

otheR

total

31 December 2021

Goodwill

 80,756 

 23,334 

938

105,028 

31 December 2020

Goodwill

 79,693 

 22,655

2,542

104,890 

FINANCIAL STATEMENTS

214

NoteS to the CoNSolidated FiNaNCial StatemeNtS

NoteS to the CoNSolidated 

FiNaNCial StatemeNtS

for the year ended 31 December 2021 

(expressed in millions of Russian Roubles,  
unless otherwise stated)

14

other intangible  

assets

BRaNd aNd PRiVate laBelS

SoFtwaRe aNd otheR

total 

Cost

At 1 January 2020

16,843

30,504

47,347

Additions

 −

12,160

 12,160

Disposals

 −

(362)

(362)

At 31 December 2020

16,843

42,302

59,145

Additions

−

 16,520

 16,520

Acquisition of businesses (Note 7)

−

 10

 10

Disposals

−

(415)

(415)

At 31 December 2021

16,843

58,417

75,260

Accumulated amortisation and impairment

At 1 January 2020

(11,554)

(11,455)

(23,009)

Amortisation charge

−

(4,323)

(4,323)

Impairment charge

(885)

(533)

(1,418)

Disposals

 −

 362

 362

At 31 December 2020

(12,439)

(15,949)

(28,388)

Amortisation charge

(76)

(7,846)

(7,922)

Impairment charge

−

(352)

(352)

Disposals

−

 408

 408

At 31 December 2021

(12,515)

(23,739)

(36,254)

Net book value at 31 December 2021

 4,328

 34,678

 39,006

Net book value at 31 December 2020

 4,404

 26,353

 30,757

Net book value at 1 January 2020

 5,289

 19,049

 24,338

The majority of additions of software are represented 
with internally generated development costs. Brand and 
private labels includes brand “Pyaterochka” with the 
carrying amount of RUB 4,029 (31 December 2020: RUB 
4,029) and brand “Karusel” with the carrying amount 
of RUB 298 (31 December 2020: RUB 373). In 2021 the 
Group revised the useful life of the brand “Karusel” to 
finite terms and started to amortise it (Note 2.7), in 2020 
the brand “Karusel” was impaired in amount of RUB 885.

Amortisation charge, impairment charge and reversal 
of impairment are included in selling, general and 
administrative expenses in the consolidated statement 
of profit or loss for the years ended 31 December 2021 
and 31 December 2020.

impairment test

At the end of 2021 management performed an 
impairment test of brands.

For private labels the evaluation performed and reasons 
for it are consistent with the approach for impairment 
testing of property, plant and equipment (Note 10). 
For brands, which are tested annually for impairment, 
evaluation performed is consistent with the approach for 
goodwill (Note 13).

Also the Group recognised an impairment of software 
which was no longer used.

Other intangible assets comprise the following:

FINANCIAL STATEMENTS

215

NoteS to the CoNSolidated FiNaNCial StatemeNtS

NoteS to the CoNSolidated 

FiNaNCial StatemeNtS

for the year ended 31 December 2021 

(expressed in millions of Russian Roubles,  
unless otherwise stated)

15

inventories

At 31 December 2021 inventories in the amount 
of RUB  166,840 were accounted at the lower of 
cost and net realisable value (31 December 2020: 
RUB 144,393). Write-off of inventory to net realisable 
value at 31 December 2021 amounted to RUB 3,021 
(31 December 2020: RUB 2,590). At 31 December 2021 
and 31 December 2020 inventories consisted mainly of 
goods for resale.

FINANCIAL STATEMENTS

216

NoteS to the CoNSolidated FiNaNCial StatemeNtS

NoteS to the CoNSolidated 

FiNaNCial StatemeNtS

for the year ended 31 December 2021 

(expressed in millions of Russian Roubles,  
unless otherwise stated)

16

Financial  

instruments  

by category

FiNaNCial aSSetS at amoRtiSed CoSt

31 deCemBeR 2021

31 deCemBeR 2020

Assets as per consolidated statement of financial position

Short-term financial investments

 50,092 

—

Trade and other receivables excluding prepayments

 15,338 

 16,626 

Cash and cash equivalents

 26,062 

 20,008 

TOTAL

 91,492 

 36,634 

FiNaNCial liaBilitieS at amoRtiSed CoSt

31 deCemBeR 2021

31 deCemBeR 2020

Liabilities as per consolidated statement of financial position

Lease liabilities

577,363   

 548,501 

Borrowings

 294,338 

 261,947 

Interest accrued

 1,792 

 1,380 

Trade, other current and non-current payables excluding statutory 
liabilities and advances

 290,074 

 236,863 

TOTAL

 1,163,567 

 1,048,691 

FINANCIAL STATEMENTS

217

NoteS to the CoNSolidated FiNaNCial StatemeNtS

NoteS to the CoNSolidated 

FiNaNCial StatemeNtS

for the year ended 31 December 2021 

(expressed in millions of Russian Roubles,  
unless otherwise stated)

17

trade, other accounts 

receivable and 

prepayments

31 deCemBeR 2021

31 deCemBeR 2020

Trade accounts receivable

 11,499

 13,828

Other receivables

 4,658

 3,879

Allowance for expected credit losses of trade and other receivables

(819)

(1,081)

TOTAL TRADE AND OTHER ACCOUNTS RECEIVABLE

 15,338

 16,626

Prepayments

 4,327

 2,452

Advances made to trade suppliers

 1,086

 699

Allowance for impairment of prepayments and advances

(561)

(500)

TOTAL PREPAYMENTS

 4,852

 2,651

TOTAL

 20,190

 19,277

The carrying amounts of the Group’s trade and other 
receivables were primarily denominated in Russian 
Roubles. Trade receivables and other receivables are 
non-interest bearing and are generally on terms of 30 to 
90 days.

During the year ended 2021 the Group made a detailed 
analysis of coronavirus influence on the expected credit 
losses and did not identify significant effects. In general, 
COVID-19 did not negatively affect the Group’s main 
debtors mostly being food suppliers, as well as other 
receivables turnover except for minor debtors, so there 
was no need for the revision of the provision matrix for 
expected credit losses.