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6.18 Provisions
Provisions referring to Group and Company are recognized if the following are met: (a) legal or implied liabili-
ties exist as a consequence of past events, (b) there is a possibility of settlement that will require the outflow if
economic benefits and (c) the amount of the liability can be measured reliably. More specifically, the Group rec-
ognizes provisions for environmental restorations as a result of exploitation of mineral resources processed
mainly for the production of Alumina and Aluminum. All provisions are reviewed at each balance-sheet date
and are adjusted accordingly so that they reflect the present value of expenses that will be required for the
restoration of the environment. Contingent receivables are not recognized in the financial statements but are
disclosed if there is a possibility of an inflow of economic benefits.
Environmental Restoration.
This provision represents the present value of the estimated costs to reclaim
quarry sites and other similar post-closure obligations.
Tax Liabilities.
This provision relates to future obligations that may result from tax audits.
Other provisions.
Comprise other provisions relating to other risks none of which are individually material to
the Group and to contingent liabilities arising from current commitments.
