336 / 488
Chapter
29 /
Provisions, Contingent Liabilities, and Contingent Assets (lAS 37)
327
Total
Enviro nmental
Onerou s Insurance Maintenan ce
Postretirement
Warranty
2006 rehabilitation
contrac ts
claim s
colltracts
benefi ts
claims
Other
.si«:
Rm
~
--....E!lL
Rm
Rm
~
Rm
Tran slation
adjustment s
63
3
28
7
10
9
6
Liabilities directly
associated with
assets classified as
held-far-sale
--l22)
-
-
-
-
---'2)
----'J!)
Cill
Balance at end of year
Lllil4
106
JJ
:1l
4112
ill
ill
SO
To be incurred
Within one year
536
8
I I
96
226
12
11 7 66
Between two to five
years
242
I
2
I
183
40
1 14
More than five years
--.ill!
si
-.J)
-.J)
---.!)
129
---.!)
-.J)
Lllil4
106
JJ
:1l
4112
ill
ill
§Q
Environmental rehabilitation
The provisions relate to factory decommissioning and quarry rehabilitation costs in Pretoria Port–
land Cement. Group companies are required to restore quarry and processing sites at the end of their
productive lives to an acceptable condition con sistent with the group' s environmental policies and
statutory regulations. The expected cost of any committed decommissioning or restoration programme,
discounted to its net present value , is provided at the beginning of each project.
Onerous contracts
The provisions include closure provisions for previously discontinued operations, con sisting mainly
of future rental costs on unoccupied leased properties. The provision is calc ulated based on the dis–
counted present value of contractual rental costs less estimated future rental rece ipts.
Insurance claims
The provision arises from outstanding cla ims in Barloworld Insurance Limited which manages the
group's insurance programme.
Maintenance contracts
This relates to deferred revenue on maintenance and repair contracts on equipment, forklift trucks ,
and motor vehicles. Assumptions include the estimation of maintenance and repair costs over the life
cycle of the asset s concerned.
Postretirement benefits
The provisions comprise mainly postretirement benefits for existing and former employees. Actu –
arial valuations were used to determine the value of the provi sions where necessary. The actuarial
valuations are based on assumptions which include emp loyee turnover, mortality rate s, di scount rates ,
the expected long-term rate of return of retirement plan assets, hea lthcare inflation cost, and rates of in–
crease in compensation costs.
Warranty claims
The provisions relate principally to warranty claims on capital equipment, spare parts, and service.
The estimate is based on claims notified and past experience .
9.3 BARLOWORLD
Notes to th e Consolida ted Annua l Financia l Statements for th e Year Ended September 30
31. Contingent Liabilities
Bills, lease, and hire-purchaseagreements discounted with recourse, other
guaranteesand claims
Litigation, current or pending, is not consideredlikely to have a material adverse
effect on the group
Buy-back and repurchasecommitments not reflectedon the balance sheet
The related assets are estimatedto have a value at least equal to the repurchase
commitment
There are no material contingent liabilities in join venture companies.
2006
Rm
622
1,250
2005
Rm
296
1,07 1
2004
Rm
194
222