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PROVISIONS
3.18
Provisions are determined on the basis of estimates of future
outflows of economic benefits relating to operational activities
for legal or constructive obligations of an uncertain size or
with an uncertain settlement date that arise from past events
and for which a reliable estimate can be made. Provisions are
discounted insofar as the difference between the discounted
value and nominal value is material. Provisions, if applicable,
relate to reorganizations, warranties, onerous contracts, soil
contamination, legal proceedings and received claims.
Provisions for reorganization costs are recognized when the
Group has a detailed formal plan for the restructuring and has
announced its main features to those affected by it at the date
of the statement of financial position or when the execution of
the plan has commenced.
Provisions for warranties are recognized based on the best
estimate of the expected cash outflows or cost of repair to
settle contractually agreed warranties during the defect
notification period for completed projects. The carrying
amount of these provisions is estimated based on common
industry practice and the Group’s experience with warranty
claims for relevant projects.
A provision for onerous contracts, including contracts for
rendering services to customers, is recognized when the
expected benefits to be derived by the Group from a contract
are lower than the unavoidable cost of meeting its obligations
under the contract.
In accordance with the Group’s policy and applicable legal
requirements, a provision for site restoration in respect of
contaminated land, and the related expenses, is recognized if
the land is contaminated.
TRADE AND OTHER PAYABLES
3.19
Trade and other payables are recognized initially at fair value
and subsequently at (amortized) cost. If the difference between
the discounted and nominal value is not material, trade and
other payables are stated at cost.
ASSETS HELD FOR SALE
3.20
Assets are classified as held for sale (disposal group) when it
is highly probable that they will be recovered primarily
through sale rather than through continuing use. Such assets
are generally measured at the lower of their carrying amount
and fair value less costs to sell. Liabilities related to the assets
held for sale are separately recognized as liabilities held for
sale. Once classified as held for sale, intangible assets and
property, plant and equipment are no longer amortized or
depreciated.
REVENUE
3.21
Revenue from the contracting of projects by the Dredging &
Inland Infra and Offshore Energy operational segments,
excluding sea transport and other related services, mainly
consists of the cost price of the work performed during the
reporting period, plus a part of the expected result upon
completion of the project in proportion to the progress made
during the reporting period, and including and/or less the
provisions recognized and/ or used and released during the
reporting period for expected losses. The applied ‘percentage-
of-completion’ method is, by nature, based on an estimation
process for the allocation of revenue over the duration of the
contract. Revenue from additional work is included in the
overall contract revenue if the customer has accepted the sum
involved. Claims and incentives are recognized if they are
virtually certain based on negotiations with the customer.
Revenue from salvage work that is completed at the date of
the statement of financial position (part of the operational
segment Towage & Salvage), but for which the proceeds are
not finally determined between parties, is recognized at
expected proceeds taking into account the estimation
uncertainty. If it is uncertain whether the economic benefits of
work done or services rendered will flow to the Group, the
relevant revenue is not recognized.
Revenue also includes revenue from services rendered to third
parties during the reporting period. Such services include the
rental/hire of equipment and/or personnel, sea transport
services and related services of Offshore Energy and the
activities of Harbor Towage. Revenues from services are
recognized in the statement of profit or loss in proportion to
the stage of completion of the work performed at the reporting
date. The stage of completion is determined based on
assessments of the work performed.
Revenue does not include any taxes on added value.
OTHER INCOME AND OTHER EXPENSES
3.22
Other income and other expenses mainly consists of book
results from disposals and insurance results.
RAW MATERIALS, CONSUMABLES, SERVICES AND
3.23
CONTRACTED WORK
Raw materials, consumables, services and contracted work
consist of the cost price of the work performed during the
reporting period, excluding personnel expenses, amortization,
depreciation and impairments. This item also includes
equipment utilization costs, costs of operational leases,
general overhead costs, external costs for research and
development where not capitalized, currency translation
differences, fair value changes of derivatives related to
hedging foreign currency effects of projects, and other
results/late results.
PERSONNEL EXPENSES
3.24
Personnel expenses consist of wages and salaries for own
personnel and the related social security charges and pension
costs, including paid and accrued contributions for defined
contribution pension plans and movements in assets and
liabilities from defined benefit plans including curtailments and
settlements, insofar as applicable, and excluding actuarial
gains and losses and the limits on net pension plan assets
added or charged directly to group equity.
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ANNUAL REPORT 2016 – BOSKALIS
FINANCIAL STATEMENTS 2016