Provisions

12 Months Ended

Dec. 31, 2019

33.	Provisions

Non

current provisions:


	Legal claims			Obligations for dismantling, removing and site restoration		Total
Balance at 1 January 2019		9,364			259,358		268,722
Provisions recognized		12,187			29,080		41,267
Unwinding of discount		—			14,262		14,262
Transfer to current provisions		(7,916	)		—		(7,916	)
Effect of changes in exchange rates		—			21,069		21,069

Balance at 31 December 2019		13,635			323,769		337,404

Balance at 1 January 2018		8,887			188,531		197,418
Provisions recognized		5,859			47,580		53,439
Unwinding of discount		—			9,760		9,760
Transfer to current provisions		(5,382	)		—		(5,382	)
Effect of changes in exchange rates		—			13,487		13,487

Balance at 31 December 2018		9,364			259,358		268,722

Provision for legal claims are recognized for the probable cash outflows related to legal disputes. Refer to Note 38.

The Group is required to incur certain costs in respect of a liability to dismantle and remove assets and to restore sites on which the assets were located. The dismantling costs are calculated according to best estimate of future expected payments discounted at a

pre-tax

discount rate that reflects current market assessments of the time value of money and the risks specific to the liability.

It is expected that the obligations for dismantling, removing and site restoration will be realized in accordance with the useful life of GSM services materials.

Additions to obligations for dismantling, removing and site restoration during the period are

non-cash

transactions and are recorded against property, plant and equipment.

Obligations for dismantling, removing and site restoration are discounted using a discount rate of 6.1% at 31 December 2019 (31 December 2018: 5.1%).

Current provisions:


	Legal claims			Bonus(*)			Total
Balance at 1 January 2019		8,593			298,475			307,068
Provisions recognized		4,369			521,647			526,016
Payments		(4,344	)		(501,234	)		(505,578	)
Transfers from non-current provisions		7,916			—			7,916
Effect of changes in exchange rates		1,306			6,084			7,390

Balance at 31 December 2019		17,840			324,972			342,812


	Legal claims			Bonus(*)			Total
Balance at 1 January 2018		605,679			229,520			835,199
Provisions recognized/(reversed)(**)		(3,520	)		408,740			405,220
Payments		(626,214	)		(338,650	)		(964,864	)
Unwinding of discount		26,185			—			26,185
Transfers from non-current provisions		5,381			—			5,381
Disposal of subsidiaries		—			(2,070	)		(2,070	)
Effect of changes in exchange rates		1,082			935			2,017

Balance at 31 December 2018		8,593			298,475			307,068

(*)

Includes share-based payment (Note 30).

(**)

Refer to Note 38.1 and 38.3 for legal claim.