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4. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)(n)Provisions (continued)(i) Provision for liabilitiesProvision for liabilities is mainly, provisions for dismantling, removal or restoration. Provisions are reviewed ateach balance sheet date and adjusted to reflect the current best estimation. Where the time value of moneyis material, the amount of a provision is the present value of the future period expenditure expected to berequired to settle the obligation.(ii)Other provisionsWhere there are a number of similar obligations, the likelihood that an outflow will be required in a settlementis determined by considering the class of obligations as a whole. A provision is recognised even if thelikelihood of an outflow with respect to any one item included in the same class of obligations may besmall.Provisions are measured at the present value of the expenditure expected to be required to settle theobligation using a pre-tax rate that reflects current market assessments of the time value of money and therisks specific to the obligation. The increase in the provision due to passage of time is recognised as interestexpense.(o) Contingent liabilities and contingent assetsThe Group does not recognise a contingent liability but discloses its existence in the financial statements.A contingent liability is a possible obligation that arises from past events whose existence will be confirmed byuncertain future events beyond the control of the Group or a present obligation that is not recognised becauseit is not probable that an outflow of resources will be required to settle the obligation. A contingent liability alsoarises in the extremely rare circumstances where there is a liability that cannot be recognised because it cannotbe measured reliably.A contingent asset is a possible asset that arises from past events whose existence will be confirmed by uncertainfuture events beyond the control of the Group. The Group does not recognise a contingent asset but discloses itsexistence where inflows of economic benefits are probable, but not virtually certain.In the acquisition of subsidiaries by the Group under a business combination, the contingent liabilities assumed aremeasured initially at their fair values at the acquisition date, irrespective of the extent of any minority interest.The Group recognises separately the contingent liabilities of the acquirers as part of allocating the cost of abusiness combination where their fair values can be measured reliably. Where the fair values cannot be measuredreliably, the resulting effect will be reflected in the goodwill arising from the acquisitions.Subsequent to the initial recognition, the Group measures the contingent liabilities that are recognised separatelyat the date of acquisition at the higher of the amount that would be recognised in accordance with the provisionsof FRS 137 and the amount initially recognised less, when appropriate, cumulative amortisation recognised inaccordance with FRS 118.Annual Report 2009 • 187