Maxis Berhad
Annual Report 2015
page
138
Notes to the Financial Statements
31 December 2015
28 PROVISIONS FOR LIABILITIES AND CHARGES (CONTINUED)
Group
Site
rectification
and
decommissioning
works
Contract
obligations
and
legal claims
Staff
incentive
scheme
CTS
costs
Total
RM’000
RM’000
RM’000
RM’000
RM’000
Represented by:
Non-current liabilities
147,362
-
3,676
-
151,038
Current liabilities
3,294
52,337
93,692
-
149,323
As at 31 December 2015
150,656
52,337
97,368
-
300,361
Non-current liabilities
134,130
-
-
-
134,130
Current liabilities
6,682
50,565
7,765
-
65,012
As at 31 December 2014
140,812
50,565
7,765
-
199,142
Descriptions of the above provisions are as disclosed in Note 3(p) to the financial statements.
Site decommissioning works
As at 31 December 2015, a provision of RM147,362,000 (2014: RM134,130,000) 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 (2014: 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.
