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151
Maxis Berhad
Annual Report 2014
Notes to the
Financial Statements
31 December 2014
28 PROVISIONS FOR LIABILITIES AND CHARGES (CONTINUED)
Group
Site
rectification
and
decommi-
ssioning
works
Contract
obligations
and
legal claims
Staff
incentive
scheme
CTS
costs
Total
RM’000 RM’000 RM’000 RM’000 RM’000
Represented by:
Current liabilities
6,682 50,565
7,765
-
65,012
Non-current liabilities
134,130
-
-
-
134,130
As at 31 December 2014
140,812 50,565
7,765
-
199,142
Current liabilities
8,686
69,178
38,240
19,369 135,473
Non-current liabilities
109,554
-
-
-
109,554
As at 31 December 2013
118,240
69,178
38,240
19,369 245,027
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 2014, a provision of RM140,812,000 (2013: RM118,240,000) 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 (2013: 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.
Contract obligations and legal claims
In the Directors’ opinion, the net negotiated cost to exit the contract will not give rise to any significant loss beyond the amounts
provided at the reporting date.
