| 30. | Provisions |
Non-current provisions:
| Legal claims | Obligations for dismantling, removing and site restoration |
Total | ||||||||||
|
Balance at 1 January 2017 |
6,889 | 180,652 | 187,541 | |||||||||
|
Provisions recognized/(reversed) |
4,256 | (8,461 | ) | (4,205 | ) | |||||||
|
Unwinding of discount |
— | 15,328 | 15,328 | |||||||||
|
Transfer to current provisions |
(2,258 | ) | — | (2,258 | ) | |||||||
|
Effect of changes in exchange rates |
— | 1,012 | 1,012 | |||||||||
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Balance at 31 December 2017 |
8,887 | 188,531 | 197,418 | |||||||||
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| Legal claims | Obligations for dismantling, removing and site restoration |
Total | ||||||||||
|
Balance at 1 January 2016 |
4,103 | 126,516 | 130,619 | |||||||||
|
Provisions recognized/(reversed) |
4,312 | 52,031 | 56,343 | |||||||||
|
Unwinding of discount |
— | (1,308 | ) | (1,308 | ) | |||||||
|
Transfer to current provisions |
(1,526 | ) | — | (1,526 | ) | |||||||
|
Effect of changes in exchange rates |
— | 3,413 | 3,413 | |||||||||
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|
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|
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|
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|
Balance at 31 December 2016 |
6,889 | 180,652 | 187,541 | |||||||||
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|
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Provision for legal claims are recognized for the probable cash outflows related to legal disputes. Refer to Note 36.
The Group is required to incur certain costs in respect of a liability to dismantle and remove assets and to restore sites on which the assets were located. The dismantling costs are calculated according to best estimate of future expected payments discounted at a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the liability.
It is expected that the obligations for dismantling, removing and site restoration will be realized in accordance with the useful life of GSM services materials.
Additions to obligations for dismantling, removing and site restoration during the period are non-cash transactions and are recorded against property, plant and equipment.
Obligations for dismantling, removing and site restoration are discounted using a discount rate of 5.6% at 31 December 2017 (31 December 2016: 5.4%).
Current provisions:
| Legal claims | Bonus | Other | Total | |||||||||||||
|
Balance at 1 January 2016 |
10,260 | 141,855 | — | 152,115 | ||||||||||||
|
Provisions recognized/(reversed) |
140,457 | 251,005 | 785 | 392,247 | ||||||||||||
|
Amounts used |
(134,019 | ) | (220,269 | ) | — | (354,288 | ) | |||||||||
|
Transfers from non-current provisions |
1,526 | — | — | 1,526 | ||||||||||||
|
Effect of changes in exchange rates |
42 | 800 | — | 842 | ||||||||||||
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|
Balance at 31 December 2016 |
18,266 | 173,391 | 785 | 192,442 | ||||||||||||
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| Legal claims | Bonus (*) | Other | Total | |||||||||||||
|
Balance at 1 January 2017 |
18,266 | 173,391 | 785 | 192,442 | ||||||||||||
|
Provisions recognized/(reversed) (**) |
583,788 | 318,603 | (785 | ) | 901,606 | |||||||||||
|
Amounts used |
(1,188 | ) | (263,080 | ) | — | (264,268 | ) | |||||||||
|
Transfer from non-current provisions |
2,258 | — | — | 2,258 | ||||||||||||
|
Unwinding of discount |
2,531 | — | — | 2,531 | ||||||||||||
|
Effect of changes in exchange rates |
24 | 606 | — | 630 | ||||||||||||
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|
Balance at 31 December 2017 |
605,679 | 229,520 | — | 835,199 | ||||||||||||
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| (*) | Includes share-based payment (Note 28). |
| (**) | Refer to Note 36.1 and 36.3. |