PSA International Pte Ltd Annual Report 2010
N otes to the Financial Statements
Year ended 31 December 2010
At 1 January 2010
Translation differences on consolidation
At 31 December 2010
The compensation sum relates to a provision made by a foreign subsidiary arising from an existing customer’s termination of contract with a third party. The estimated amount provided is based on actual claim made against the foreign subsidiary. A corresponding recoverable amount of $13.0 million (2009: $17.7 million) from another third party is included in other receivables (see note 13).
An agreement to lease and grant the usage of pipeline wayleave between a subsidiary and a local authority requires the subsidiary to remove the pipeline at the end of the wayleave term. The provision for site restoration is based on an independent quotation received from a consultant. These costs are included as part of the carrying value of the pipeline capitalised in property, plant and equipment.
Other non-current obligations
Loans from non-controlling shareholders of subsidiaries Defined benefit obligations Other non-current obligations
The loans from non-controlling shareholders of subsidiaries form part of the shareholder’s investment in the subsidiaries. The loans are unsecured, interest-free and settlement is neither planned nor likely to occur in the foreseeable future. Accordingly, they are stated at cost.