120 / 166
2017
R’000
2016
R’000
30.
PROVISIONS
Long-term portion
513 792
397 970
Short-term portion
223 945
358 319
737 737
756 289
Onerous
contracts
R’000
Dismantling
and site
restoration
R’000
Customer
loyalty
programme
R’000
Other
R’000
Total
R’000
Balance at July 1 2015
67 774
344 015
99 669
96 285
607 743
Created
806
166 865
25 031
53 173
245 875
Utilised
(31 649)
(65 400)
(18 832)
(60 039)
(175 920)
Net acquisition of businesses
–
2 149
(178)
(1 533)
438
Exchange rate adjustments
7 338
27 912
17 159
17 136
69 545
Effect of discounting
1 383
7 225
–
–
8 608
Balance at June 30 2016
45 652
482 766
122 849
105 022
756 289
Created
–
135 464
51 655
80 674
267 793
Utilised
(3 394)
(129 674)
(39 976)
(48 021)
(221 065)
Net acquisition of businesses
–
4 668
–
13 600
18 268
Exchange rate adjustments
(5 894)
(62 975)
(12 435)
(10 227)
(91 531)
Effect of discounting
1 096
6 887
–
–
7 983
Balance at June 30 2017
37 460
437 136
122 093
141 048
737 737
Onerous contracts
Onerous contracts are identified through regular reviews of the terms and conditions of contracts as well as on the acquisition of
businesses. A provision for onerous contracts is calculated as the present value of the portion which management deems to be onerous in
light of the current market conditions, discounted using market-related rates. An annual expense is recognised over the life of the contracts.
Provision for cost of dismantling and site restoration
A provision is raised for the estimated costs of dismantling and removing items, and restoring the property on which they are located.
The change in the liability arising as a result of unwinding the discount is recognised in the income statement as a finance charge. The
dismantling of the plant and recommissioning of buildings is expected to coincide with the end of the useful life of the plant and lease
periods.
Customer loyalty programme
This is a customer loyalty programme introduced by certain operations within the group, whereby customers can earn points for
redemption in the form of gift certificates and products of the operations. The provision is calculated based on the points outstanding at
year-end.
Other
Consists of provision for restructuring and various other individually insignificant provisions.
FINANCIAL OVERVIEW
Notes to the consolidated financial statements
for the year ended June 30
FINANCIAL STAT MENTS
Annual integrated report 2017
Bid Corporation Limited
116