# Provisions

Provisions are recognized when the Group has a present obligation (legal or constructive) resulting from a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to any provision is presented in the income statement, net of any reimbursement. If the effect of the time-value of money is material, provisions are discounted. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance expense.

The basis for the provision amount if available are in the following order:

1. Invoice amount
2. Offer amount
3. Historic amount
4. Market amount if available
5. Estimation by the accountant

2022-01-01 - Version 1.0