Page 101 - Bradken Annual Report 2013_Page flip

Basic HTML Version

BRADKEN LIMITED ANNUAL REPORT 2013 65
Notes to the consolidated financial statements
30 June 2013
(continued)
18 Provisions
2013
2012
$'000
$'000
Current
Employee benefits
47,652
47,133
Restructuring
2,558
-
Warranty
2,640
1,026
52,850
48,159
Non-current
Employee benefits
17,963
21,497
17,963
21,497
(a)
(b)
(c)
2013
Warranty
Warranty
Restructuring
Restructuring
Current
Non current
Current
Non current
$'000
$'000
$'000
$'000
Carrying amount at start of year
1,026
-
-
-
Additional provisions recognised
8,892
-
2,558
-
FX variations
-
-
-
-
Amounts used
(7,278)
-
-
-
Carrying amount at end of year
2,640
-
2,558
-
(d)
2013
2012
$'000
$'000
4,137
2,749
Movements in provisions
Movements in each class of provision during the financial year, other than employee benefits, are set out below:
Warranties
Long service leave obligation expected to be settled after 12 months
Amounts not expected to be settled within the next 12 months
The current provision for long service leave includes all unconditional entitlements where employees have completed the required
period of service and also those where employees are entitled to pro-rata payments in certain circumstances. The entire amount
is presented as current, since the Group does not have an unconditional right to defer settlement. However, based on past
experience, 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. The following amounts reflect leave that is not to be expected to be taken or paid within the next 12
months.
Provision is made for known warranty claims at balance date. Most claims are expected to be settled in the next financial year.
Management estimates the provision based on expected costs to be incurred to resolve the warranty claim.
Restructuring
A provision of $2,558,000 has been created in the current period to cover redundancies made in the Group's Australian
operations from July 2013.
Page 65
Bradken Limited