Annual Report 2000 in PDF - Antofagasta plc

20 Provisions for Liabilities and Charges (continued)Provision is also made for severance indemnities which are payable on termination of employment or the eventual closureof such operations. Severance costs were previously calculated on a current value basis. These have been reassessed on adiscounted basis taking into account the expected service lives of employees. The effect of this change in methodologyhas been to reduce the severance indemnities provision by US$1.7 million (£1.1 million). This has been credited to theprofit and loss account in 2000 as an adjustment to the discounting charge for the period.Deferred tax balances were previously netted off against corporation tax debtor and creditor balances. These have beenreclassified and separately disclosed in provisions for liabilities and charges above, following the implementation ofFRS 19 “Deferred Tax”. The amount reclassified at the start of year was US$7.0 million (£4.3 million), and prior yearcomparatives in respect of debtors, creditors and provisions have been restated accordingly. The reclassification hasno effect on results, cash flows or net assets. Deferred tax is calculated on an undiscounted basis. Further details ofdeferred tax are given in Note 7.21 Called Up Share CapitalGroup and CompanyUS DollarsSterling2000 1999 2000 1999Authorised US$m US$m £m £m2 million 5% cumulative preference shares of £1 each 3.0 3.2 2.0 2.0214.54 million ordinary shares of 5p each 16.0 17.2 10.7 10.719.0 20.4 12.7 12.72000 1999 2000 1999Called up, allotted and fully paid US$m US$m £m £m2 million 5% cumulative preference shares of £1 each 3.0 3.2 2.0 2.0197.2 million ordinary shares of 5p each 14.7 15.9 9.9 9.917.7 19.1 11.9 11.9The preference shares are non-redeemable and entitled to a fixed cumulative dividend of 5% per annum. On a windingup they are entitled to repayment and any arrears of dividend in priority to ordinary shareholders, but are not entitledto participate further in any surplus. Each preference share carries 20 votes at any general meeting. The ordinary sharesrank after the preference shares in entitlement to dividend and on a winding up. Each ordinary share carries one voteat any general meeting.ANTOFAGASTA PLC Annual Report 200069