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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
503
Current
536 480
12.3.
1 004
863.
226
Per business segment:
Continuing operations
Equipment
318
164
201
Industrial distribution
44
34
53
Motor
309 286
293
Cement
116
113
127
Coatings
32
4 1
74
Scientific
20
28
21
Corporate and other
165
185
208
Total continuing operations
1004
ill
ill
Discontinued operation-steel tube
---.2Q
-fl
.is
Total group
.LQ24
863.
226
Total
Environmental
Onerous Insurance
Maintenance Postretirement
War ranty
2006 rehabilitation
contracts
claims
contracts
benefi ts
claims
Other
.si«:
Rm
-Bm....-
~
Rm
Rm
-Bm....-
Rm
Movement of
provisions
Balance at beginning
of year
863
97
36
101
335
136
74 84
Amounts added
\,20\
3
9
\7
5\5
103
507 47
Am ounts used
(1,065)
(I )
(28)
(49)
(427)
(57)
(460)
(43)
Amounts reversed
unused
(45)
(7)
(23)
(9)
(4)
(2)
Unwinding of
discount on present
valued amo unts
9
7
2
0