Sample Disclosure – Note On Provision For Liabilities (15 December 2010)
PROVISION FOR LIABILITIES
a) Guaranteed Rental Returns & Marketing Incentives
Provision for guaranteed rental returns and marketing incentives are in respect of the sale of development properties. The provision is made for the expected guaranteed rental returns and marketing incentives granted to the purchasers based on the agreements entered into by the Company with these purchasers. These agreements set out the terms and conditions in which upon fulfilment, would result in the purchasers entitled to payments to be made by the Company.
b) Liquidated Ascertained Damages
Provision for liquidated ascertained damages is in respect of projects undertaken by the Company. The provision is recognised for expected amount of liquidated ascertained damages claims based on the applicable agreements entered into by the Company.