EY Corporate homepage

45 Provisions

    Premises   Drawing rights
of current
members
  Total  
    €000   €000   €000
             
At 1 July 2014   15,968   10,555   26,523
Additions   2,193   -   2,193
Payments   -3,679   -2,328   -6,007
Amounts released   -1,443   -284   -1,727
Unwinding of discount   227   421   648
             
At 30 June 2015   13,266   8,364   21,630
Additions   473   -   473
Payments   -4,567   -991   -5,558
Amounts released   -4,143   -267   -4,410
Unwinding of discount   197   378   575
             
At 30 June 2016   5,226   7,484   12,710
             
with a term < 1 year   4,272   991   5,263
with a term > 1 year   8,994   7,373   16,367
             
At 30 June 2015   13,266   8,364   21,630
             
with a term < 1 year   2,929   1,004   3,933
with a term > 1 year   2,297   6,480   8,777
             
At 30 June 2016   5,226   7,484   12,710

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 0.7 % for lease contracts 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%).