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Notes to the Financial Statements
Washington H. Soul Pattinson and Company Limited
Annual Report 2016
116
Other Operating Assets and Liabilities
NOTE 31
PROVISIONS (continued)
31
2016
2015
$’000
$’000
Current Liabilities
Mining restoration and site rehabilitation (ii)
13,613
6,156
Employee benefits (i)
36,453
30,382
Native title claims
–
137
50,066
36,675
Non-Current Liabilities
Mining restoration and site rehabilitation (ii)
89,877
59,280
Employment benefits (i)
6,950
4,746
Native title claims
–
10
Other
65
–
96,892
64,036
(i) Employee benefits
Current liabilities not expected to be settled within the next 12 months
The current provision for employee benefits includes accrued annual leave, vested sick leave and long service
leave for all unconditional settlements where employees have completed the required period of service and also
those where employees are entitled to pro-rata payment in certain circumstances. The entire amount is presented
as current, since the Group does not have an unconditional right to defer settlement. However, on past experi-
ence, the Group does not expect all employees to take the full amount of accrued long service leave or require
payment within the next 12 months.
(ii) Mining restoration and site rehabilitation
2016
2015
$’000
$’000
Movements in provision 2016
Carrying amount at beginning of year
65,436
56,399
Provision arising on acquisition of businesses
37,982
–
Provisions (written down)/capitalised recognised
(3,118)
8,687
Provisions charged/(credited) to income statement
53
(2,348)
Charged to income statement – unwinding of discount
3,137
2,698
Carrying amount at end of year
103,490
65,436
Disclosed as:
Current liabilities
13,613
6,156
Non-current liabilities
89,877
59,280
Total provision for mining restoration and site rehabilitation
103,490
65,436
Key Estimate
Mining restoration and site rehabilitation
The Group makes estimates about the future cost of rehabilitating tenements which are currently disturbed,
based on legislative requirements and current costs. Cost estimates take into account past experience and
expectations of future events that are expected to alter past experiences. Any changes to legislative requirements
could have a significant impact on the expenditure required to restore these areas.