Fortum Corporation (2010) 1. Accounting Policies [extract] 1.25 Assets and liabilities related to decommissioning of nuclear power plants and the disposal of spent fuel [extract] Fortum owns Loviisa nuclear power plant in Finland. Fortum’s nuclear related provisions and the related part of the State Nuclear Waste Management Fund and the related nuclear provisions are both presented separately on the balance sheet. Fortum’s share in the […]

Syngenta AG (2011)> 2. Accounting policies [extract] Environmental provisions [extract] Provisions for remediation costs are made when there is a present obligation, it is probable that expenditures for remediation work will be required within ten years (or a longer period if specified by a legal obligation) and the cost can be estimated within a reasonable range of possible outcomes. The costs are based on currently […]

Commitments and contingencies [extract] Environmental Matters Syngenta has recorded provisions for environmental liabilities at some currently or formerly owned, leased and third party sites throughout the world. These provisions are estimates of amounts payable or expected to become payable and take into consideration the number of other potentially responsible parties (“PRP”) at each site and the identity and financial positions of such parties in light […]

BP p.l.c. (2010) 1 Significant accounting policies [extract] Environmental expenditures and liabilities Environmental expenditures that relate to current or future revenues are expensed or capitalized as appropriate. Expenditures that relate to an existing condition caused by past operations and do not contribute to current or future earnings are expensed. Liabilities for environmental costs are recognized when a clean-up is probable and the associated costs can […]

A levy is triggered in full as soon as the entity generates revenues in a specific market An entity with calendar year end generates revenues in a specific market in 2013. The amount of the levy is determined by reference to revenues generated by the entity in the market in 2012, although the levy is only payable when revenues are generated in 2013. The entity […]

Recognition of a provision for warranty costs A manufacturer gives warranties at the time of sale to purchasers of its product. Under the terms of the contract for sale, the manufacturer undertakes to make good, by repair or replacement, manufacturing defects that become apparent within three years from the date of sale. On past experience, it is probable (i.e. more likely than not) that there […]

Nokia Corporation (2011) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 1. Accounting principles [extract] Provisions [extract] Provisions are recognized 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 a reliable estimate of the amount can be made. When the Group expects a provision […]

Accounting for donations to non-profit organisations An entity decides to enter into an arrangement to ‘donate’ €1m in cash to a university. A number of different options are available for the arrangement and the entity’s management want to determine whether the terms of these options make any difference to the timing, measurement or presentation of the €1m expenditure, as follows: Option 1: The entity enters […]

Revenue recognition for licensors in the record and music industry For each recording master delivered by a pop group, THRAG, the group (which operates through a service company) receives a payment of €1,000,000. This amount comprises: a non-returnable, non-recoupable payment of €100,000; a non-returnable but recoupable advance of €600,000; and a returnable, recoupable advance of €300,000. The recoupable advances of €900,000 can be recouped against […]

AB InBev NV (2010) 3. Summary of significant accounting policies [extract] (X) Income recognition [extract] Government grants A government grant is recognized in the balance sheet initially as deferred income when there is reasonable assurance that it will be received and that the company will comply with the conditions attached to it. Grants that compensate the company for expenses incurred are recognized as other operating […]