117 / 136
115
NOTE 30
TRADE AND OTHER PAYABLES
NOTE 31
PROVISIONS
30
31
2016
2015
$’000
$’000
Current Liabilities
Trade and other payables
75,831
49,329
Trade and other payables
The balance at 31 July 2016 includes $64.513 million (2015: $42.512 million) relating to New Hope
Corporation Limited.
Accounting policy
– Provisions
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events,
it is probable that an outflow of resources will be required to settle the obligation and the amount has been
reliably estimated. Provisions are not recognised for future operating losses.
Provisions are measured at the present value of management’s best estimate of the expenditure required to settle
the present obligation at the end of the reporting period. The discount rate used to determine the present value
is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the
liability.
i. Restoration, rehabilitation and environmental expenditure
Provisions are raised for restoration, rehabilitation and environmental expenditure as soon as an obligation exists,
with the cost being charged progressively to the income statement in respect of ongoing rehabilitation. Where
the obligation relates to decommissioning of assets and restoring the sites on which they are located, the costs
are carried forward in the value of the asset and amortised over its useful life.
The obligations include profiling, stabilisation and revegetation of the completed area, with cost estimates based
on current statutory requirements and current technology.
ii. Employee entitlements
Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits, annual leave and vesting sick leave, expected
to be settled wholly within 12 months after the end of the period in which the employees render the related
service are recognised in respect of employees’ services up to the end of the reporting period and are measured
at the amounts expected to be paid when the liabilities are settled. The liability of annual leave and accumulating
sick leave is recognised in the provision for employee benefits. All other short-term benefit obligations are
presented as payables.
Other long-term employee benefit obligations
The liabilities for long service leave and annual leave which are not expected to be settled within 12 months
after the end of the period in which the employees render the related service, are recognised in the provision
for employee benefits and measured as the present value of expected future payments to be made in respect of
services provided by employees up to the end of the reporting period using the projected unit credit method.
Consideration is given to expected future wage and salary levels, experience of employee departures and periods
of service. Expected future payments are discounted using market yields at the end of the reporting period
based on national government bonds with terms to maturity and currency that match, as closely as possible, the
estimated future cash outflows.