Maxis Berhad | Annual Report 2012

Maxis Berhad // Annual Report 2012 152 28 PROVISIONS FOR LIABILITIES AND CHARGES (CONTINUED) Group Site rectification and Network decommi- construction Staff ssioning costs and incentive works settlements scheme Total RM’000 RM’000 RM’000 RM’000 Represented by: (continued) Current liabilities 10,113 9,350 45,002 64,465 Non-current liabilities 93,675 – – 93,675 As at 31 December 2011 103,788 9,350 45,002 158,140 Current liabilities 10,527 9,350 40,060 59,937 Non-current liabilities 126,536 – – 126,536 As at 1 January 2011 137,063 9,350 40,060 186,473 Descriptions of the above provisions are as disclosed in Note 3(p) to the financial statements. Site rectification and decommissioning works As at 31 December 2012, a provision of RM111,276,000 (31.12.2011: RM103,788,000; 1.1.2011: RM137,063,000) has been recognised for dismantling, removal and site restoration costs. The provision is estimated using the assumption that decommissioning will only take place upon the expiry of the lease terms (inclusive of secondary terms) of 15 to 30 years (31.12.2011: 15 to 30 years; 1.1.2011: 15 to 30 years). The provision has been estimated based on the current conditions of the sites, at the estimated costs to be incurred upon the expiry of lease terms and discounted at the current market interest rate available to the Group. The provisions will be utilised over the remaining lease periods which range from 1 to 16 years (31.12.2011: 1 to 16 years; 1.1.2011: 1 to 16 years). Network construction costs and settlements In the Directors’ opinion, the outcome of the notices of termination, legal claims, negotiations for settlements and costs in respect of obligations under network construction contracts will not give rise to any significant loss beyond the amounts provided at the reporting date. NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2012 Continued