Integrated Annual Report 2024 SECTION 6 • FINANCIAL STATEMENTS 285 Notes to the Financial Statements 17. PROVISIONS Employee entitlements (Note 17.1) RM’000 Restoration and rehabilitation (Note 17.2) RM’000 Total RM’000 Group At 1 January 2023 9,199 170,734 179,933 Provisions reversed during the year - (32,730) (32,730) Unwinding of discount 736 6,274 7,010 Effect of movements in exchange rates 479 7,316 7,795 At 31 December 2023/1 January 2024 10,414 151,594 162,008 Unwinding of discount 487 6,181 6,668 Effect of movements in exchange rates (1,198) (17,204) (18,402) At 31 December 2024 9,703 140,571 150,274 2024 Non-current 1,081 139,561 140,642 Current 8,622 1,010 9,632 9,703 140,571 150,274 2023 Non-current 1,034 150,637 151,671 Current 9,380 957 10,337 10,414 151,594 162,008 17.1 Employee entitlements The long service leave provision is measured at the present value of expected future payments in respect of services provided by the employees up to the end of the reporting period. Forecast future salary levels, experience of employees, turnover and periods of service are considered in determining the liability. 17.2 Restoration and rehabilitation The provision for restoration and rehabilitation relates to the estimated costs associated with the joint operation’s obligation for decommissioning and demolition of all industrial and support infrastructure from the site and revegetation of the land. The rehabilitation is expected to occur in the next 52 years. Because of the long-term nature of the liability, the greatest uncertainty in estimating the provision is the costs that will be incurred. The provision is the best estimate of the present value of the expenditure required to settle the restoration obligation at the reporting date, based on current legal requirements and technology. The provision has been calculated using a nominal discount rate of 4.4% (2023: 4.4%). Future restoration costs are reviewed annually and any changes are reflected in the present value of the restoration provision at the end of the reporting period. The unwinding of the effect of discounting on provision is recognised as a finance cost.
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