Provisions
A provision is recognized if the following applies:
| • | the company has a legal or constructive obligation, arising from a past event; |
| • | the amount can be estimated reliably; and |
| • | it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation. |
If all or part of the payments that are necessary to settle a provision are virtually certain to be fully or partially compensated by a third party upon settlement of the provision, then the compensation amount is presented separately as an asset.
Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognized as finance cost.