Notes to the consolidated financial statements - Swisscom

28 Accrued liabilities
CHF in millions
Balance at December 31, 1999
Effect of adopting IAS 37
Additional provisions
Present value adjustment
Unused amounts reversed
Utilised during year
Acquisitions
Balance at December 31, 2000
Additional provisions
Present value adjustment
Reclassifications
Unused amounts reversed
Utilised during year
Translation adjustments
Balance at December 31, 2001
Less current portion
Total non-current accrued liabilities
Swisscom adopted IAS 37 at January 1, 2000; the impact on shareholders’ equity
at January 1, 2000 is CHF 56 million, net of deferred income taxes of CHF 8 million.
See Note 16.
For details on termination benefits, see Note 7.
The provision for dismantlement and restoration costs relates to the dismantlement
of mobile stations and analog transmitter stations and restoration of property owned
by third parties on which the transmitters are situated. These costs are expected to be
incurred mainly between 2005 and 2015. As a result of adopting IAS 37, Swisscom calculated
the total provision required for the analog transmitter stations discounted to
its present value and recorded the cost and accumulated depreciation at January 1,
2000 under property, plant and equipment. The net book value capitalized at January
1, 2000 was CHF 31 million. See Note 23.
The provision for dismantlement and restoration costs of broadcasting sites is estimated
at current prices, and discounted using a discount rate of 4.5% and 3.75% in 2000
and 2001, respectively. The provision for dismantlement and restoration costs of mobile
stations is estimated at current prices, and discounted using a discount rate of 4.5%
and 3.5% in 2000 and 2001, respectively. The amount of the present value adjustment
arising from the changes in the discount rate is CHF 11 million in 2001.
The reserve for environmental liabilities was reduced because under the terms of the
sale and leaseback agreement Swisscom was no longer liable for such costs and as a result
of certain technology changes and other factors it was concluded that the provision
should be reduced.
47 Swisscom Consolidated financial statements
Termination
Dismantlement
and
restoration Environ-
benefits costs mental Other Total
58
–
27
–
–
(57)
–
28
82
–
–
–
(34)
–
76
(28)
48
316
(12)
20
14
–
–
–
338
1
26
2
(18)
–
–
349
–
349
225
(21)
–
8
-
(1)
–
211
1
3
–
(183)
–
–
32
–
32
172
–
35
–
(9)
(89)
58
167
64
–
(11)
(25)
(50)
(2)
143
(100)
43
771
(33)
82
22
(9)
(147)
58
744
148
29
(9)
(226)
(84)
(2)
600
(128)
472