XML 202 R29.htm IDEA: XBRL DOCUMENT v3.20.2
Employee benefits, restructuring and post-retirement employee benefits provisions
 12 Months Ended
Jun. 30, 2020
Text block [abstract]  
Employee benefits, restructuring and post-retirement employee benefits provisions
25    Employee benefits, restructuring and post-retirement employee benefits provisions
 
   
2020
   2019 
   
US$M
   
US$M
 
Employee benefits
 (1)
  
 
1,313
 
   1,140 
Restructuring
 (2)
  
 
34
 
   78 
Post-retirement employee benefits
 (3)
  
 
547
 
   493 
  
 
 
   
 
 
 
Total provisions
  
 
1,894
 
   1,711 
  
 
 
   
 
 
 
Comprising:
    
Current
  
 
1,283
 
   1,154 
Non-current
  
 
611
 
   557 
 
2020
  
Employee
benefits
  
Restructuring
  
Post-
retirement
employee
benefits
(3)
  
Total
 
   
US$M
  
US$M
  
US$M
  
US$M
 
At the beginning of the financial year
  
 
1,140
 
 
 
78
 
 
 
493
 
 
 
1,711
 
Charge/(credit) for the year:
     
Underlying
  
 
1,224
 
 
 
26
 
 
 
65
 
 
 
1,315
 
Discounting
  
 
–
 
 
 
–
 
 
 
36
 
 
 
36
 
Net interest expense
  
 
–
 
 
 
–
 
 
 
(21
) 
 
 
(21
) 
Exchange variations
  
 
(31
) 
 
 
(1
) 
 
 
(34
) 
 
 
(66
) 
Released during the year
  
 
(127
) 
 
 
(12
) 
 
 
(1
) 
 
 
(140
) 
Remeasurement gains taken to retained earnings
  
 
–
 
 
 
–
 
 
 
81
 
 
 
81
 
Utilisation
  
 
(893
) 
 
 
(58
) 
 
 
(70
) 
 
 
(1,021
) 
Transfers and other movements
  
 
–
 
 
 
1
 
 
 
(2
) 
 
 
(1
) 
  
 
 
  
 
 
  
 
 
  
 
 
 
At the end of the financial year
  
 
1,313
 
 
 
34
 
 
 
547
 
 
 
1,894
 
  
 
 
  
 
 
  
 
 
  
 
 
 
 
(1)
 
The expenditure associated with total employee benefits will occur in a pattern consistent with when employees choose to exercise their entitlement to benefits.
 
(2)
 
Total restructuring provisions include provisions for terminations and office closures.
 
(3)
 
Refer to note 26 ‘Pension and other post-retirement obligations’.
 
Recognition and measurement
Provisions are recognised by the Group when:
 
• 
there is a present legal or constructive obligation as a result of past events;
 
• 
it is more likely than not that a permanent outflow of resources will be required to settle the obligation;
 
• 
the amount can be reliably estimated and measured at the present value of management’s best estimate of the cash outflow required to settle the obligation at reporting date.
 
Provision
  
Description
Employee benefits
  
Liabilities for annual leave and any accumulating sick leave accrued up until the reporting date that are expected to be settled within 12 months are measured at the amounts expected to be paid when the liabilities are settled.
 
Liabilities for long service leave are measured as the present value of estimated future payments for the services provided by employees up to the reporting date and disclosed within employee benefits.
 
Liabilities that are not expected to be settled within 12 months are discounted at the reporting date using market yields of high-quality corporate bonds or government bonds for countries where there is no deep market for corporate bonds. The rates used reflect the terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.
 
In relation to industry-based long service leave funds, the Group’s liability, including obligations for funding shortfalls, is determined after deducting the fair value of dedicated assets of such funds.
 
Liabilities for unpaid wages and salaries are recognised in other creditors.
Restructuring
  
Restructuring provisions are recognised when:
 
•  
 
 
 
 the Group has a detailed formal plan identifying the business or part of the business concerned, the location and approximate number of employees affected, a detailed estimate of the associated costs, and an appropriate timeline;
 
• 
 
 
 
  the restructuring has either commenced or been publicly announced and can no longer be withdrawn.
 
Payments falling due greater than 12 months after the reporting date are discounted to present value.