FGV Annual Report 2012

102 Felda Global Ventures Holdings Berhad 43 PROVISIONS 2012 Group Provision Provision for asset for retirement restructuring Total RM’000 RM’000 RM’000 At 1 January 4,744 1,421 6,165 Unwinding of discount 258 – 258 Payment made during the financial year (29) (1,309) (1,338) Currency translation differences (167) (6) (173) At 31 December 4,806 106 4,912 Less: payable within 12 months (306) (106) (412) Non-current 4,500 – 4,500 2011 Group Provision Provision Provision for asset for capital for retirement lease restructuring Total RM’000 RM’000 RM’000 RM’000 At 1 January 4,391 1,800 – 6,191 Provision during the financial year – – 1,421 1,421 Unwinding of discount 259 – – 259 Reclassification – (1,387) – (1,387) Payment made during the financial year (33) (461) – (494) Currency translation differences 127 48 – 175 At 31 December 4,744 – 1,421 6,165 Less: payable within 12 months (317) – (1,421) (1,738) Non-current 4,427 – – 4,427 Provision for asset retirement relates to existence of asbestos at Group’s fatty acids manufacturing facility in USA. The asset retirement obligation was based on detailed estimates, adjusted for inflation, escalated to the estimated spending dates, and then discounted using an average credit adjusted risk-free interest rate of 7.9% of which represents management’s best estimate of the liability. Actual costs to be incurred in future periods may vary from estimates, given the inherent uncertainties in evaluating certain exposures subject to the imprecision in estimating the asset retirement obligation. In previous financial year, a subsidiary of the Group, TRT ETGO, recorded a restructuring provision of RM1,421,000. The provision relates principally to the down-sizing of the finance and commercial departments following theTRT ETGO’s investment in a jointly controlled entity.The restructuring plan was drawn up and announced to the employees and the provision was recognised in 2011. Payments of RM1,309,000 were paid in 2012. Notes to the Financial Statements for the financial year ended 31 December 2012