Annual Reports Keepmoat Homes Annual Report 2018 | Page 77

Notes to the Company financial statements
Keepmoat.com
37 – Provisions for liabilities
Deferred
consideration Dilapidations Other Total
£’000 £’000 £’000 £’000
At 31 March 2017 8,142 19 319 8,480
Charged to the income statement 1,179 22 3,591 4,792
On acquisition of subsidiary 2,256 - - 2,256
Utilised during year (2,189) - (185) (2,374)
At 31 March 2018 9,388 41 3,725 13,154
Current 9,388 - 2,117 11,505
- 41 1,608 1,649
At 31 March 2018 9,388 41 3,725 13,154
Current 1,813 - 319 2,132
Non-current 6,329 19 - 6,348
At 31 March 2017 8,142 19 319 8,480
Non-current
Deferred consideration
Deferred consideration arises in connection with the acquisition of MCI Developments Limited during the year (note 24) and
is discounted to present values.
Dilapidations
The dilapidations provision covers the Company’s leased estate. A full provision up to the end of each lease was established
by an independent external valuer, with the element up to the date of the financial statements being recognised in the
accounts on a pro-rated straight line basis.
Other provisions
Other provisions comprise legal fees in relation to claims and onerous lease provisions relating to the Company’s leased
estate. The onerous lease provision is calculated on a property by property basis and is calculated up to the next available
break date or end of lease, whichever is the earlier.
Dilapidations and other provisions are stated at expected cost as the effects of discounting are considered to be immaterial.
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