B COMMUNICATIONS LTD | CIK:0001402606 | 3

  • Filed: 5/15/2018
  • Entity registrant name: B COMMUNICATIONS LTD (CIK: 0001402606)
  • Generator: Ez-XBRL
  • SEC filing page: http://www.sec.gov/Archives/edgar/data/1402606/000121390018006381/0001213900-18-006381-index.htm
  • XBRL Instance: http://www.sec.gov/Archives/edgar/data/1402606/000121390018006381/bcom-20171231.xml
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  • ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory

    N.Provisions

     

    A provision is recognized if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is more likely than not that an outflow of economic benefits will be required to settle the obligation.

     

    (1)Legal claims

     

    Contingent liabilities are accounted for according to IAS 37 and its related provisions. Accordingly, the claims are classified by likelihood of realization of the exposure to risk, as follows:

     

    a.More likely than not - more than 50% probability

     

    b.Possible - probability higher than unlikely and less than 50%

     

    c.Remote - probability of 10% or less

     

    For claims which the Group has a legal or constructive obligation as a result of a past event, which are more likely than not to be realized, the financial statements include provisions which, in the opinion of the Group, based, among other things, on the opinions of its legal advisers retained in respect of those claims, are appropriate to the circumstances of each case, despite the claims being denied by the Group companies. There are also a few recently filed legal proceedings for which the risks cannot be assessed at this stage, therefore no provisions have been made.

     

    Note 20 describes the amount of additional exposure due to contingent liabilities that are likely to be realized.

     

    (2)Site restoration and clearing costs

     

    A provision in respect of an obligation to restore and clear sites is recognized for those rental agreements where the Group has an undertaking to restore the rental property to its original state at the end of the rental period, after dismantling and transferring the site, and restoring it as necessary. The provisions are determined by discounting the expected future cash flows. The carrying amount of the provision is adjusted each period to reflect the time that has passed and is recognized as a financing expense.