IFRS PRACTICAL IMPLEMENTATION GUIDE AND WORKBOOK

326

Wiley IFRS: Practical Implementation Guide and Workbook

9. EXTRACTS FROM PUBLISHED FINANCIAL STATEMENTS 9.1 HOLCIM, Annua l Repor t 2006 Notes to the Financial Statements Acco unting Policies Site Restoration and Other Environmental Provisions

The Group provides for the costs of restoring a site where a legal or constructive obligation exists. The cost of raising a provision before exploitation of the raw materials has commenced is included in property, plant, and equipment and depreciated over the life of the site. The effec t of any adjustments to the provision due to further environmental damage is recorded through operating costs over the life of the site to reflect the best estimate of the expenditure required to settle the obligation at balance sheet date. Changes in the measurement of a provision that result from changes in the estimated timing or amount of cash outflows, or a change in the discount rate, are added to, or deducted from, the cost of the related asset as appropriate in the current period. All provisions are discounted to their present value based on a long-term borrowing rate. Emission Rights The initial allocation of emission rights granted is recognized at nominal amount (nil value). Where a Gro up company has emi ssions in exces s of the emission rights granted, it will recognize a provision for the shortfall based on the market price at that date. The emission rights are held for compliance pur– poses only and therefore the group does not intend to speculate with these in the open market. Othe r Provisions A provision is recognized when there exists a legal or constructive obligation arising from past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of this amount. 9.2 BARLOWORLD Notes to the Consolidated Annual Financial Statements for the Yea r Ended September 30 16. Provisions

2006 2005 2004 ---.B1JL ....B!11..- --..B!!1....

Noncurrent

468 383 536 480

503 12.3. 226

Current

863.

1 004

Per business segment: Continuing operations Equipment Industrial distribution

318

201

164

34

44

53

Motor Cement Coatings Scientific

293 127

309 286

116

113

32 20

4 1 28

74 21

Corporate and other

165

185 ill -fl 863.

208 ill .is 226

Total continuing operations Discontinued operation-steel tube

1004 ---.2Q .LQ24

Total group

Maintenance Postretirement

Total

Environmental

Onerous Insurance

War ranty

contracts -Bm....-

claims

contracts

2006 rehabilitation

benefi ts

claims

Other

-Bm....-

Rm

.si«:

Rm

Rm

Rm

~

Movement of provisions Balance at beginning of year Amounts added Amounts reversed unused Unwinding of Am ounts used

74 84 507 47

863

97

101

335 5\5

136 103 (57)

36

\,20\

\7

3

9

(49)

(1,065)

(28)

(427)

(460)

(43)

(I )

(45)

(7)

(23)

(4)

(2)

(9)

discount on present valued amo unts

9

7

2

0