and site restoration
|Balance at 1 January 2009||-||4,490||-||4,490|
|Provision made/used during the year||95||590||467||1,152|
|Unwind of discount||-||-||-||-|
|Effect of change in foreign exchange rate||-||34||-||34|
|Balance at 31 December 2009||95||0.50||467||5,676|
and site restoration
|Balance at 1 January 2010||95||5,114||467||5,676|
|Provision made/used during the year||627||50,473||223||51,323|
|Unwind of discount||-||266||-||266|
|Effect of change in foreign exchange rate||-||(210)||-||(210)|
|Balance at 31 December 2010||722||55,643||690||57,055|
Legal provisions are set for the probable cash outflows related to legal disputes.
The Group is required to incur certain costs in respect of a liability to dismantle and remove assets and to restore sites on which the assets were located. The dismantling costs are calculated according to best estimate of future expected payments discounted at a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the liability.
The above mentioned additions to obligations for dismantling, removing and site restoration during the period are non-cash transactions recorded against property, plant and equipment.
|Balance at 1 January 2009||44,258||38,091||82,349|
|Provision made during the year||158,580||36,784||195,364|
|Provisions used during the year||(40,018)||(37,996)||(78,014)|
|Unwind of discount||-||235||235|
|Effect of change in foreign exchange rate||5,098||135||5,233|
|Balance at 31 December 2009||167,918||37,249||205,167|
|Balance at 1 January 2010||167,918||37,249||205,167|
|Provision made/(reversed) during the year||59,303||45,617||104,920|
|Provisions used during the year||(115,004)||(39,056)||(154,060)|
|Unwind of discount||1,885||(53)||1,832|
|Effect of change in foreign exchange rate||(2,949)||(1,098)||(4,047)|
|Balance at 31 December 2010||111,153||42,659||153,812|
Legal provisions are set for the probable cash outflows related to legal disputes. In Note 32, under legal proceedings section, detailed explanations are given with respect to legal provisions.
The bonus provision totalling to $42,659 comprises mainly the provision for the year ended 31 December 2010 and is planned to be paid in March 2011.