UBI Banca Group

11. Non-current assets and disposal groups held for sale –
Liabilities associated with disposal groups held for sale
Non-current assets and liabilities and groups of non-current assets and liabilities for which it
is presumed that the carrying value will recovered by selling them rather than by continued
use are classified respectively under items 150 “Non-current assets and disposal groups held
for sale” and 90 “Liabilities associated with disposal groups held for sale”.
In order to be classified within these items the assets or liabilities (or disposal groups) must be
immediately available for sale and there must be active, concrete programmes to sell the
assets or liabilities in the short term.
These assets or liabilities are measured at the lower of the carrying amount and their fair
value net of disposal costs. Profits and losses attributable to groups of assets or liabilities held
for sale are recognised in the income statement under item 310 “Post-tax profit from
discontinued operations Profits and losses attributable to individual assets held for disposal
are recognised in the income statement under the most appropriate item.
12. Provisions for risks and charges
12.1. Definition
A provision is defined as a liability of uncertain timing or amount.
A contingent liability, however, is defined as:
• a possible obligation, the result of past events, the existence of which will only be
confirmed by the occurrence or (non occurrence) of future events that are not totally under
the control of the company;
• a present obligation that is the result of past events, but which is not recognised in the
accounts because:
it is improbable that financial resources will be needed to settle the obligation;
the amount of the obligation cannot be measured with sufficient reliability.
Contingent liabilities are not recognised in the accounts, but are only reported, unless they are
considered a remote possibility.
12.2. Recognition criteria and measurement
A provision is recognised if and only if:
• there is a present obligation (legal or implicit) that is the result of a past event, and
• it is probable that the use of resources suitable for producing economic benefits will be
required to fulfil the obligation, and
• a reliable estimate can be made of the amount arising from fulfilment of the obligation.
The amount recognised as a provision represents the best estimate of the expenditure required
to settle the present obligation at the reporting date and reflects the risks and uncertainties
that inevitably characterise a number of facts and circumstances. The amount of a provision is
measured by the present value of the expenditure that it is assumed will be necessary to settle
the obligation where the effect of the present value is a substantial aspect. Future events that
273