10.2 Provisions
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In accordance with IAS 37 – Provisions, Contingent Liabilities and Contingent Assets, a provision is recognized when the Group has a present obligation (legal, contractual or implicit) as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation. Provisions are determined based on the best estimate of the expenditure required to settle the obligation.

Provisions for restructuring costs are recorded when the Group has a detailed formal plan for the restructuring and the plan’s main features have been announced to those affected by it.

 

 

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Provisions for losses due to voucher theft are calculated for reported thefts based on a percentage of the stolen vouchers’ aggregate face value corresponding to the Group’s best estimate of the proportion of those vouchers that will be cashed in.

 

Movements in non-current provisions between January 1, 2020 and December 31, 2020 can be analyzed as follows:

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Movements in current provisions between January 1, 2020 and December 31, 2020 can be analyzed as follows:

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Taken individually, all ongoing disputes are immaterial, with the exception of those presented in Note 10.3 “Claims, litigation and tax risk”.

Reversals of unused amounts of provisions for claims and litigation mainly comprised the reversal of provision relating to the ICSID dispute with the Hungarian government presented in Note 10.3 “Claims, litigation and tax risk”.