Provisions and Contingent LiabilitiesProvisions and Contingent Liabilities

Provisions and Contingent Liabilities

<table cellspacing="0" cellpadding="0" style="border:0.75pt solid #000000; border-collapse:collapse"><tbody><tr><td colspan="3" style="width:476.55pt; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-bottom:5pt"><span style="font-weight:bold">Where, as a result of past events, there may be an outflow of resources embodying future economic benefits in settlement of: (a) a present obligation; or (b) a possible obligation whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.</span></p></td></tr><tr><td style="width:143.45pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p><span style="font-weight:bold">There is a present obligation that probably requires an outflow of resources.</span></p></td><td style="width:166.4pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p><span style="font-weight:bold">There is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources.</span></p><p><span></span></p></td><td style="width:145.1pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p><span style="font-weight:bold">There is a possible obligation or a present obligation where the likelihood of an outflow of resources is remote.</span></p></td></tr><tr><td style="width:143.45pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p><span>A provision is recognised</span><br><span>(paragraph 14).</span></p><p><span></span></p><p><span>Disclosures are required for the provision (paragraphs 84 and 85).</span></p><p><span></span></p></td><td style="width:166.4pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-left:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p><span>No provision is recognised</span><br><span>(paragraph 27).</span></p><p><span></span></p><p><span>Disclosures are required for the contingent liability (paragraph 86).</span></p><p><span></span></p></td><td style="width:145.1pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p><span>No provision is recognised</span><br><span>(paragraph 27).</span></p><p><span></span></p><p><span>No disclosure is required</span><br><span>(paragraph 86).</span></p></td></tr></tbody></table>

A contingent liability also arises in the extremely rare case where there is a liability that cannot be recognised because it cannot be measured reliably. Disclosures are required for the contingent liability.