Accounting for free minutes An operator enters into a service contract with a customer for a period of 12 months. Under the contract specifications, the customer is offered for the first 2 months 60 free minutes talktime per month and for the remaining 10 months of the contract the customer will pay a fixed fee of €30 per month for 60 minutes of communication per […]

AngloGold Ashanti Limited (2010) 1.3 Summary of significant accounting policies [extract] Environmental expenditure The group has long-term remediation obligations comprising decommissioning and restoration liabilities relating to its past operations which are based on the group’s environmental management plans, in compliance with the current environmental and regulatory requirements. Provisions for non-recurring remediation costs are made when there is a present obligation, it is probable that expense […]

Vivendi SA (2010) Notes to the Consolidated Financial Statements [extract] Note 1. Accounting Policies and Valuation Methods [extract] 1.3. Principles governing the preparation of the Consolidated Financial Statements [extract] 1.3.4. Revenues from operations and associated costs [extract] 1.3.4.3. SFR, Maroc Telecom Group and GVT [extract] Content sales Sales of services provided to customers managed by SFR and Maroc Telecom Group on behalf of content providers […]

Changes in decommissioning costs – related asset measured at cost An entity has a nuclear power plant and a related decommissioning liability. The nuclear power plant started operating on 1 January 2000. The plant has a useful life of 40 years. Its initial cost was $120,000; this included an amount for decommissioning costs of $10,000, which represented $70,400 in estimated cash flows payable in 40 […]

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 […]

No provision without a past obligating event The government introduces a number of changes to the income tax system. As a result of these changes, an entity in the financial services sector will need to retrain a large proportion of its administrative and sales staff in order to ensure continued compliance with financial services regulation. At the end of the reporting period, no training has […]

When the recognition of a provision gives rise to an asset An entity operates an offshore oilfield where its licensing agreement requires it to remove the oil rig at the end of production and restore the seabed. 90% of the eventual costs relate to the removal of the oil rig and restoration of damage caused by building it, with 10% expected to arise through the […]

Calculation of expected value An entity sells goods with a warranty under which customers are covered for the cost of repairs of any manufacturing defects that become apparent within the first six months after purchase. If minor defects were detected in all products sold, repair costs of £1 million would result. If major defects were detected in all products sold, repair costs of £4 million […]