Brambles 2006 Annual Report - Alle jaarverslagen

100
Brambles
2006 Annual Report
NOTES TO AND FORMING PART OF
THE CONSOLIDATED FINANCIAL STATEMENTS continued
for the year ended 30 June 2006
Note 3.
Critical accounting estimates
and judgements
In applying its accounting policies, Brambles has made estimates
and assumptions concerning the future, which may differ from the
related actual outcomes. Those estimates and assumptions which
have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next financial
year are discussed below.
IRRECOVERABLE POOLING EQUIPMENT
PROVISIONING
Loss or damage is an inherent risk of pooling equipment
operations. CHEP’s pooling equipment operations around
the world differ in terms of business model, market dynamics,
customer and distribution channel profiles, contractual
arrangements and operational detail. Brambles conducts audits
on a regular basis to confirm the existence and the condition of
its pooling equipment assets, and monitors its pooling equipment
operations using detailed key performance indicators (KPIs).
The irrecoverable pooling equipment provision is determined by
reference to historical statistical data in each market, including the
outcome of audits and relevant KPIs, together with management
estimates of future equipment losses.
INCOME TAXES
Brambles is a global company and is subject to income taxes
in many jurisdictions around the world. Significant judgement
is required in determining the provision for income taxes on a
worldwide basis. There are many transactions and calculations
undertaken during the ordinary course of business for which the
ultimate tax determination is uncertain. Brambles recognises
liabilities for anticipated tax audit issues based on estimates of
whether additional taxes will be due. Where the final tax outcome
of these matters is different from amounts provided, such
differences will impact the current and deferred tax provisions
in the period in which such outcome is obtained.
PROVISIONS ON DIVESTMENTS
Brambles has made provisions in relation to vendor warranties
and other matters associated with the divestments made in
2006 and prior years. These provisions have been established
by management using information currently available. Where
the eventual outcome of these matters is different from amounts
currently provided, such differences will impact profits in the
period in which such outcome is recognised.