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JOTUN GROUP
Restructuring provisions are recognised only when the recognition criteria
for provisions are fulfilled. The Group has a constructive obligation when
a detailed, formal plan identifies the business, or part of the business,
concerned, the location and number of employees affected, a detailed
estimate of the associated costs, and an appropriate timeline. Furthermore,
the employees affected must have been notified of the plans main
features.
Environmental provisions are made when there is a present obligation, it
is probable that expenditures for remediation work will be required, and
the cost can be measured within a reasonable range of possible outcomes.
Generally, the timing of recognition coincides with the commitment to a
formal plan of action or, if earlier, on divestment or closure of inactive sites.
Expenditures that relate to an existing condition caused by past operations,
and that do not contribute to current or future earnings, are expensed.
If the effect of the time value of money is material, provisions are
discounted using a current pre-tax rate that reflects, when appropriate, the
risks specific to the liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as a finance cost.
18. CONTINGENT LIABILITIES AND ASSETS
Contingent liabilities are not recognised in the annual accounts. Significant
contingent liabilities are disclosed, with the exception of contingent
liabilities that are unlikely to be incurred.
Contingent assets (unless virtually certain) are not recognised in the annual
accounts, but are disclosed if the inflow of economic benefits is probable.
19. EVENTS AFTER THE REPORTING PERIOD
New information regarding the company’s financial position at the end of
the reporting period and that becomes known after the reporting period,
is recorded in the annual accounts. Events after the reporting period that
do not affect the company’s financial position at the end of the reporting
period, but which will affect the company’s financial position in the future,
are disclosed if significant.