Note: provisions and contingencies

• Roll-forward by class (taken from “Provisions roll-forward”)

  Table

  PRODUCT_WARRANTIES · 300,000 · 180,000 · 210,000 · 0 · 0 · 270,000 | LITIGATION · 400,000 · 0 · 0 · 90,000 · 0 · 310,000 | ENVIRONMENT · 0 · 500,000 · 0 · 0 · 0 · 500,000 | SITE_RESTORATION · 800,000 · 0 · 0 · 0 · 40,000 · 840,000

• Total provisions at the end of the period (all classes)

  Number

  1,920,000

• Asset recognised for expected reimbursements

  Number

  350,000

• Estimate of the financial effect of the contingent liabilities disclosed (where practicable)

  Number

  300,000

• Estimate of the financial effect of the contingent assets disclosed (where practicable)

  Number

  120,000

• Status of disputes and contingencies at the reporting date (opinions of counsel, later events)

  TextRequired

  BELVAUX_PARTNER_SHARE_AND_TARVENNE_CLAIM

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 37 §84IAS 37IAS 37

• Points examined

  ChecklistRequired

  • Class grouping items of a sufficiently similar nature for a single description (warranties and legal proceedings kept apart, for example)
  • Provision and contingent liability arising from the same circumstances: link shown in the note
  • Roll-forward by class agreeing with the ledger balances

IAS 37 §28IAS 37 §30IAS 37 §33IAS 37 §34IAS 37

• Points examined

  ChecklistRequired

  • Contingent liabilities reassessed: provision if the outflow has become probable
  • Contingent liabilities whose outflow is remote: no disclosure
  • Contingent assets disclosed only if the inflow is probable
  • Inflow that has become virtually certain: asset recognised, no longer a contingent asset

IAS 37 §28IAS 37 §33IAS 37 §34IAS 37 §86IAS 37IAS 37 §91IAS 37

• Probability retained for the contingency examined

  JudgmentRequired

  Outflow not probable but not remote: contingent liability disclosed

  Outflow probable: provision (outside the contingencies note) / Outflow not probable but not remote: contingent liability disclosed / Outflow remote: no disclosure / Inflow virtually certain: asset recognised / Inflow probable: contingent asset disclosed / Inflow not probable: no disclosure

  Professional judgement based on the opinions of counsel and the facts of the case; this model puts no figure on remote or virtually certain.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Extent of the information disclosed

  JudgmentRequired

  Full information (nature, financial effect, uncertainties)

  Full information (nature, financial effect, uncertainties) / Estimate not practicable: that fact is stated / Serious prejudice in a dispute (extremely rare case): general nature of the dispute, fact and reason of the omission / Outflow remote: contingent liability not disclosed

  Professional judgement: the serious prejudice exemption is reserved for extremely rare cases and still requires minimum information (para. 92).

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

IAS 37 §84IAS 37 §85IAS 37 §86IAS 37IAS 37IAS 37IAS 37 §91IAS 37

• Provisions (by class)

  ChecklistRequired

  • Reconciliation of opening and closing amounts: additions, amounts used, reversals, unwinding and rate effect (comparatives not required)
  • Brief description of the nature of the obligation and expected timing of the outflows
  • Uncertainties about the amount or timing and major assumptions about future events
  • Expected reimbursement and amount of the asset recognised for it

• Contingent liabilities (unless remote)

  ChecklistRequired

  • Brief description of their nature
  • Estimate of the financial effect, where practicable
  • Uncertainties about the amount or timing of the outflow
  • Possibility of any reimbursement
  • Link with a provision arising from the same circumstances

• Contingent assets (inflow probable)

  Checklist

  • Brief description of the nature of the contingent assets at the reporting date
  • Estimate of the financial effect using the measurement principles for provisions, where practicable
  • Wording avoiding any misleading indication of the likelihood of income arising

• Special cases

  Checklist

  • Information not practicable: that fact is stated
  • Serious prejudice: general nature of the dispute, fact that the information has not been disclosed and reason

• Draft note (own wording, without misleading indications)

  TextRequired

  GROUP_NOTE_DRAFTED

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The probability retained is documentedPass
• The extent of the disclosure is documentedPass
• The total of provisions at the end of the period is statedPass
• The draft note is writtenPass

Assets

0

Liabilities

0

Profit or loss

0

OCI

0

Equity

0

• Roll-forward by class (taken from “Provisions roll-forward”)

  Table

• Total provisions at the end of the period (all classes)

  Number

  1,920,000

• Asset recognised for expected reimbursements

  Number

• Estimate of the financial effect of the contingent liabilities disclosed (where practicable)

  Number

• Estimate of the financial effect of the contingent assets disclosed (where practicable)

  Number

• Status of disputes and contingencies at the reporting date (opinions of counsel, later events)

  TextRequired

  PATENT_INFRINGEMENT_CLAIM_IN_NEGOTIATION

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 37 §84IAS 37IAS 37

• Points examined

  ChecklistRequired

  • Class grouping items of a sufficiently similar nature for a single description (warranties and legal proceedings kept apart, for example)
  • Provision and contingent liability arising from the same circumstances: link shown in the note
  • Roll-forward by class agreeing with the ledger balances

IAS 37 §28IAS 37 §30IAS 37 §33IAS 37 §34IAS 37

• Points examined

  ChecklistRequired

  • Contingent liabilities reassessed: provision if the outflow has become probable
  • Contingent liabilities whose outflow is remote: no disclosure
  • Contingent assets disclosed only if the inflow is probable
  • Inflow that has become virtually certain: asset recognised, no longer a contingent asset

IAS 37 §28IAS 37 §33IAS 37 §34IAS 37 §86IAS 37IAS 37 §91IAS 37

• Probability retained for the contingency examined

  JudgmentRequired

  Outflow not probable but not remote: contingent liability disclosed

  Outflow probable: provision (outside the contingencies note) / Outflow not probable but not remote: contingent liability disclosed / Outflow remote: no disclosure / Inflow virtually certain: asset recognised / Inflow probable: contingent asset disclosed / Inflow not probable: no disclosure

  Professional judgement based on the opinions of counsel and the facts of the case; this model puts no figure on remote or virtually certain.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Extent of the information disclosed

  JudgmentRequired

  Serious prejudice in a dispute (extremely rare case): general nature of the dispute, fact and reason of the omission

  Full information (nature, financial effect, uncertainties) / Estimate not practicable: that fact is stated / Serious prejudice in a dispute (extremely rare case): general nature of the dispute, fact and reason of the omission / Outflow remote: contingent liability not disclosed

  Professional judgement: the serious prejudice exemption is reserved for extremely rare cases and still requires minimum information (para. 92).

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

IAS 37 §84IAS 37 §85IAS 37 §86IAS 37IAS 37IAS 37IAS 37 §91IAS 37

• Provisions (by class)

  ChecklistRequired

  • Reconciliation of opening and closing amounts: additions, amounts used, reversals, unwinding and rate effect (comparatives not required)
  • Brief description of the nature of the obligation and expected timing of the outflows
  • Uncertainties about the amount or timing and major assumptions about future events
  • Expected reimbursement and amount of the asset recognised for it

• Contingent liabilities (unless remote)

  ChecklistRequired

  • Brief description of their nature
  • Estimate of the financial effect, where practicable
  • Uncertainties about the amount or timing of the outflow
  • Possibility of any reimbursement
  • Link with a provision arising from the same circumstances

• Contingent assets (inflow probable)

  Checklist

  • Brief description of the nature of the contingent assets at the reporting date
  • Estimate of the financial effect using the measurement principles for provisions, where practicable
  • Wording avoiding any misleading indication of the likelihood of income arising

• Special cases

  Checklist

  • Information not practicable: that fact is stated
  • Serious prejudice: general nature of the dispute, fact that the information has not been disclosed and reason

• Draft note (own wording, without misleading indications)

  TextRequired

  GROUP_NOTE_DRAFTED

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The probability retained is documentedPass
• The extent of the disclosure is documentedPass
• The total of provisions at the end of the period is statedPass
• The draft note is writtenPass

Assets

0

Liabilities

0

Profit or loss

0

OCI

0

Equity

0

• Roll-forward by class (taken from “Provisions roll-forward”)

  Table

• Total provisions at the end of the period (all classes)

  Number

  1,920,000

• Asset recognised for expected reimbursements

  Number

• Estimate of the financial effect of the contingent liabilities disclosed (where practicable)

  Number

• Estimate of the financial effect of the contingent assets disclosed (where practicable)

  Number

  120,000

• Status of disputes and contingencies at the reporting date (opinions of counsel, later events)

  TextRequired

  LIABILITY_ADMITTED_AMOUNT_DISPUTED

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 37 §84IAS 37IAS 37

• Points examined

  ChecklistRequired

  • Class grouping items of a sufficiently similar nature for a single description (warranties and legal proceedings kept apart, for example)
  • Provision and contingent liability arising from the same circumstances: link shown in the note
  • Roll-forward by class agreeing with the ledger balances

IAS 37 §28IAS 37 §30IAS 37 §33IAS 37 §34IAS 37

• Points examined

  ChecklistRequired

  • Contingent liabilities reassessed: provision if the outflow has become probable
  • Contingent liabilities whose outflow is remote: no disclosure
  • Contingent assets disclosed only if the inflow is probable
  • Inflow that has become virtually certain: asset recognised, no longer a contingent asset

IAS 37 §28IAS 37 §33IAS 37 §34IAS 37 §86IAS 37IAS 37 §91IAS 37

• Probability retained for the contingency examined

  JudgmentRequired

  Inflow probable: contingent asset disclosed

  Outflow probable: provision (outside the contingencies note) / Outflow not probable but not remote: contingent liability disclosed / Outflow remote: no disclosure / Inflow virtually certain: asset recognised / Inflow probable: contingent asset disclosed / Inflow not probable: no disclosure

  Professional judgement based on the opinions of counsel and the facts of the case; this model puts no figure on remote or virtually certain.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Extent of the information disclosed

  JudgmentRequired

  Full information (nature, financial effect, uncertainties)

  Full information (nature, financial effect, uncertainties) / Estimate not practicable: that fact is stated / Serious prejudice in a dispute (extremely rare case): general nature of the dispute, fact and reason of the omission / Outflow remote: contingent liability not disclosed

  Professional judgement: the serious prejudice exemption is reserved for extremely rare cases and still requires minimum information (para. 92).

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

IAS 37 §84IAS 37 §85IAS 37 §86IAS 37IAS 37IAS 37IAS 37 §91IAS 37

• Provisions (by class)

  ChecklistRequired

  • Reconciliation of opening and closing amounts: additions, amounts used, reversals, unwinding and rate effect (comparatives not required)
  • Brief description of the nature of the obligation and expected timing of the outflows
  • Uncertainties about the amount or timing and major assumptions about future events
  • Expected reimbursement and amount of the asset recognised for it

• Contingent liabilities (unless remote)

  ChecklistRequired

  • Brief description of their nature
  • Estimate of the financial effect, where practicable
  • Uncertainties about the amount or timing of the outflow
  • Possibility of any reimbursement
  • Link with a provision arising from the same circumstances

• Contingent assets (inflow probable)

  Checklist

  • Brief description of the nature of the contingent assets at the reporting date
  • Estimate of the financial effect using the measurement principles for provisions, where practicable
  • Wording avoiding any misleading indication of the likelihood of income arising

• Special cases

  Checklist

  • Information not practicable: that fact is stated
  • Serious prejudice: general nature of the dispute, fact that the information has not been disclosed and reason

• Draft note (own wording, without misleading indications)

  TextRequired

  GROUP_NOTE_DRAFTED

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The probability retained is documentedPass
• The extent of the disclosure is documentedPass
• The total of provisions at the end of the period is statedPass
• The draft note is writtenPass

Assets

0

Liabilities

0

Profit or loss

0

OCI

0

Equity

0

• Roll-forward by class (taken from “Provisions roll-forward”)

  Table

  PRODUCT_WARRANTIES · 410,000 · 137,000 · 230,000 · 0 · 0 · 317,000 | LITIGATION · 260,000 · 500,000 · 60,000 · 50,000 · 0 · 650,000 | ENVIRONMENT · 1,600,000 · 870,000 · 0 · 0 · 80,000 · 2,550,000 | RESTRUCTURING · 0 · 745,000 · 0 · 0 · 0 · 745,000 | ONEROUS_CONTRACTS · 0 · 50,000 · 0 · 0 · 0 · 50,000

• Total provisions at the end of the period (all classes)

  Number

  4,312,000

• Asset recognised for expected reimbursements

  Number

  300,000

• Estimate of the financial effect of the contingent liabilities disclosed (where practicable)

  Number

  420,000

• Estimate of the financial effect of the contingent assets disclosed (where practicable)

  Number

  340,000

• Status of disputes and contingencies at the reporting date (opinions of counsel, later events)

  TextRequired

  QUESSANDRE_CO_OBLIGOR_SHARE_AND_TALVORNE_APPEAL

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 37 §84IAS 37IAS 37

• Points examined

  ChecklistRequired

  • Class grouping items of a sufficiently similar nature for a single description (warranties and legal proceedings kept apart, for example)
  • Provision and contingent liability arising from the same circumstances: link shown in the note
  • Roll-forward by class agreeing with the ledger balances

IAS 37 §28IAS 37 §30IAS 37 §33IAS 37 §34IAS 37

• Points examined

  ChecklistRequired

  • Contingent liabilities reassessed: provision if the outflow has become probable
  • Contingent liabilities whose outflow is remote: no disclosure
  • Contingent assets disclosed only if the inflow is probable
  • Inflow that has become virtually certain: asset recognised, no longer a contingent asset

IAS 37 §28IAS 37 §33IAS 37 §34IAS 37 §86IAS 37IAS 37 §91IAS 37

• Probability retained for the contingency examined

  JudgmentRequired

  Outflow not probable but not remote: contingent liability disclosed

  Outflow probable: provision (outside the contingencies note) / Outflow not probable but not remote: contingent liability disclosed / Outflow remote: no disclosure / Inflow virtually certain: asset recognised / Inflow probable: contingent asset disclosed / Inflow not probable: no disclosure

  Professional judgement based on the opinions of counsel and the facts of the case; this model puts no figure on remote or virtually certain.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Extent of the information disclosed

  JudgmentRequired

  Full information (nature, financial effect, uncertainties)

  Full information (nature, financial effect, uncertainties) / Estimate not practicable: that fact is stated / Serious prejudice in a dispute (extremely rare case): general nature of the dispute, fact and reason of the omission / Outflow remote: contingent liability not disclosed

  Professional judgement: the serious prejudice exemption is reserved for extremely rare cases and still requires minimum information (para. 92).

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

IAS 37 §84IAS 37 §85IAS 37 §86IAS 37IAS 37IAS 37IAS 37 §91IAS 37

• Provisions (by class)

  ChecklistRequired

  • Reconciliation of opening and closing amounts: additions, amounts used, reversals, unwinding and rate effect (comparatives not required)
  • Brief description of the nature of the obligation and expected timing of the outflows
  • Uncertainties about the amount or timing and major assumptions about future events
  • Expected reimbursement and amount of the asset recognised for it

• Contingent liabilities (unless remote)

  ChecklistRequired

  • Brief description of their nature
  • Estimate of the financial effect, where practicable
  • Uncertainties about the amount or timing of the outflow
  • Possibility of any reimbursement
  • Link with a provision arising from the same circumstances

• Contingent assets (inflow probable)

  Checklist

  • Brief description of the nature of the contingent assets at the reporting date
  • Estimate of the financial effect using the measurement principles for provisions, where practicable
  • Wording avoiding any misleading indication of the likelihood of income arising

• Special cases

  Checklist

  • Information not practicable: that fact is stated
  • Serious prejudice: general nature of the dispute, fact that the information has not been disclosed and reason

• Draft note (own wording, without misleading indications)

  TextRequired

  GROUP_NOTE_DRAFTED

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The probability retained is documentedPass
• The extent of the disclosure is documentedPass
• The total of provisions at the end of the period is statedPass
• The draft note is writtenPass

Assets

0

Liabilities

0

Profit or loss

0

OCI

0

Equity

0

• Roll-forward by class (taken from “Provisions roll-forward”)

  Table

• Total provisions at the end of the period (all classes)

  Number

  4,312,000

• Asset recognised for expected reimbursements

  Number

• Estimate of the financial effect of the contingent liabilities disclosed (where practicable)

  Number

• Estimate of the financial effect of the contingent assets disclosed (where practicable)

  Number

• Status of disputes and contingencies at the reporting date (opinions of counsel, later events)

  TextRequired

  COMPETITION_INQUIRY_OPENED

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 37 §84IAS 37IAS 37

• Points examined

  ChecklistRequired

  • Class grouping items of a sufficiently similar nature for a single description (warranties and legal proceedings kept apart, for example)
  • Provision and contingent liability arising from the same circumstances: link shown in the note
  • Roll-forward by class agreeing with the ledger balances

IAS 37 §28IAS 37 §30IAS 37 §33IAS 37 §34IAS 37

• Points examined

  ChecklistRequired

  • Contingent liabilities reassessed: provision if the outflow has become probable
  • Contingent liabilities whose outflow is remote: no disclosure
  • Contingent assets disclosed only if the inflow is probable
  • Inflow that has become virtually certain: asset recognised, no longer a contingent asset

IAS 37 §28IAS 37 §33IAS 37 §34IAS 37 §86IAS 37IAS 37 §91IAS 37

• Probability retained for the contingency examined

  JudgmentRequired

  Outflow not probable but not remote: contingent liability disclosed

  Outflow probable: provision (outside the contingencies note) / Outflow not probable but not remote: contingent liability disclosed / Outflow remote: no disclosure / Inflow virtually certain: asset recognised / Inflow probable: contingent asset disclosed / Inflow not probable: no disclosure

  Professional judgement based on the opinions of counsel and the facts of the case; this model puts no figure on remote or virtually certain.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Extent of the information disclosed

  JudgmentRequired

  Estimate not practicable: that fact is stated

  Full information (nature, financial effect, uncertainties) / Estimate not practicable: that fact is stated / Serious prejudice in a dispute (extremely rare case): general nature of the dispute, fact and reason of the omission / Outflow remote: contingent liability not disclosed

  Professional judgement: the serious prejudice exemption is reserved for extremely rare cases and still requires minimum information (para. 92).

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

IAS 37 §84IAS 37 §85IAS 37 §86IAS 37IAS 37IAS 37IAS 37 §91IAS 37

• Provisions (by class)

  ChecklistRequired

  • Reconciliation of opening and closing amounts: additions, amounts used, reversals, unwinding and rate effect (comparatives not required)
  • Brief description of the nature of the obligation and expected timing of the outflows
  • Uncertainties about the amount or timing and major assumptions about future events
  • Expected reimbursement and amount of the asset recognised for it

• Contingent liabilities (unless remote)

  ChecklistRequired

  • Brief description of their nature
  • Estimate of the financial effect, where practicable
  • Uncertainties about the amount or timing of the outflow
  • Possibility of any reimbursement
  • Link with a provision arising from the same circumstances

• Contingent assets (inflow probable)

  Checklist

  • Brief description of the nature of the contingent assets at the reporting date
  • Estimate of the financial effect using the measurement principles for provisions, where practicable
  • Wording avoiding any misleading indication of the likelihood of income arising

• Special cases

  Checklist

  • Information not practicable: that fact is stated
  • Serious prejudice: general nature of the dispute, fact that the information has not been disclosed and reason

• Draft note (own wording, without misleading indications)

  TextRequired

  GROUP_NOTE_DRAFTED

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The probability retained is documentedPass
• The extent of the disclosure is documentedPass
• The total of provisions at the end of the period is statedPass
• The draft note is writtenPass

Assets

0

Liabilities

0

Profit or loss

0

OCI

0

Equity

0