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ASX Additional Information

THE GROUP PARENT ENTITY

2008
$’000
2007
$’000
2008
$’000
2007
$’000
NOTE 24 — PROVISIONS CONTINUED
Reconciliations
Reconciliations of the carrying amounts of each class of provisions,
except for employee benefits, are set out below:
Onerous contracts
Carrying amount at the beginning of the year
Provisions utilised during the year
Provisions for lease costs on closed cinema sites raised/(released)
Provisions for surplus leased space raised/(released)
Payments made on lease termination
Notional interest
Reduction made during the year
Net foreign currency differences on translation of foreign operations
5,469
(1,958)
(2,266)
(124)
—
—
—
100
8,456
(2,375)
3,300
231
(3,500)
154
(797)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Carrying amount at the end of the year 1,221 5,469 — —
Insurance loss contingencies and other claims
Carrying amount at the beginning of the year
Payments made during the year
Provisions made during the year
Reduction made during the year
586
(215)
9
(32)
2,505
(1,541)
47
(425)
—
—
—
—
—
—
—
—
Carrying amount at the end of the year 348 586 — —
Decommissioning of leasehold improvements
Carrying amount at the beginning of the year
Provisions made during the year
Notional interest
Net foreign currency differences on translation of foreign operations
6,699
57
190
211
7,046
—
126
(473)
—
—
—
—
—
—
—
—
Carrying amount at the end of the year 7,157 6,699 — —
Support of related entities
Carrying amount at the beginning of the year
Reduction made during the year
—
—
852
(852)
—
—
—
—
Carrying amount at the end of the year — — — —

Onerous contracts

The onerous contracts provision relates to a long term non-cancellable operating lease in respect of a hotel property and one cinema site in
Germany that has been closed. The hotel lease has a further one year to run. Since entering into this lease, there has been a change in market
conditions which has resulted in this lease being deemed onerous and therefore a provision has been raised for the forecast net deficit resulting
from obligations under this lease. The cinema site lease also has a further one year to run. The basis of accounting is set out in Note 1(q)(ii).

Insurance loss contingencies and other claims

The provision relates to estimated costs to be incurred in respect of various claims that are expected to be settled within twelve months of the
balance date.

Decommissioning of leasehold improvements

The decommissioning of leasehold improvements provision has been raised in respect of “make-good” obligations under long term lease
contracts for cinema sites. In determining the provision, an assessment has been made, for each location, of the likelihood that a
decommissioning cost will be incurred in the future and where applicable, the level of costs to be incurred. Uncertainty exists in estimating the
level of costs to be incurred in the future because of the long-term nature of cinema leases. The basis of accounting is set out in Note 1(q)(iii).