Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is
probable that the entity will be required to transfer economic benefits in settlement and the amount of the
obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position
and the amount of the provision as an expense.
Provisions are initially measured at the best estimate of the amount required to settle the obligation at the
reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate
of the amount that would be required to settle the obligation. Any adjustments to the amounts previously
recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an
asset. When a provision is measured at the present value of the amount expected to be required to settle the
obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.