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19 Provisions

    Professional
indemnity
  Premises   Drawing rights
of current
members
  Total  
    €000   €000   €000   €000
                 
At 1 July 2014   1,317   16,331   10,555   28,203
Additions   676   1,830   -   2,506
Payments   -1,145   -3,679   -2,328   -7,152
Amounts released   -198   -1,443   -284   -1,925
Unwinding of discount   -   227   421   648
                 
At 30 June 2015   650   13,266   8,364   22,280
                 
Additions   806   542   -   1,348
Payments   -519   -4,567   -991   -6,077
Amounts released   -   -4,143   -267   -4,410
Unwinding of discount   -   197   378   575
                 
At 30 June 2016   937   5,295   7,484   13,716
                 
with a term < 1 year   150   4,272   991   5,413
with a term > 1 year   500   8,994   7,373   16,867
                 
At 30 June 2015   650   13,266   8,364   22,280
                 
with a term < 1 year   937   2,998   1,004   4,939
with a term > 1 year   -   2,297   6,480   8,777
                 
At 30 June 2016   937   5,295   7,484   13,716

Professional indemnity
Professional indemnity claims, other than the policy excess, are insured under the EY International insurance program. The professional indemnity provision serves to cover current exposures, with a maximum per event of the uninsured policy excess. Based on the best estimate of timing the cash outflow is not discounted. In the normal course of business, entities may receive claims for alleged negligence.

Substantial insurance cover is carried in respect of professional negligence. Cover is principally written through captive insurance companies involving other EY firms and a significant proportion of the total cover is reinsured through the commercial market. Cases are usually resolved within three years, although claims that involve court action may take longer to resolve. Contingent liabilities arise where payments resulting from a claim are not probable or where it is not possible to reliably estimate the financial effect of a claim.

Premises
A provision has been formed for the rent due for the remaining term of the leases of offices, or parts of them, rented by EYNL but unoccupied. This provision also relates to the expected cost of returning rented offices to their original condition when they are vacated.

The provisions for vacant office buildings and dilapidation costs are calculated at present value using a discount rate of 0.4% for lease contracts ending within 6 years (30 June 2015: 1.1%) and of 0.7% for lease contract with a term of 6 years or longer (30 June 2015: 1.5%).

Drawing rights of current members
During 2008/2009, the drawing rights of current members were set at fixed amounts and became an obligation of EYNL, payable upon their retirement dates. The obligation is recognized at the best estimate of the expected payments upon retirement of the respective partners, using actuarial assumptions and discounted at a pre-tax rate of 5.0% (30 June 2015: 5.0%).