$’000

$’000

2.5: Provision for Restoration

Movements in Provision for Restoration

As at 1 July

493

481

Revaluation of provision

284

-

Unwinding of discount

13

12

Total as at 30 June

790

493

The Mint currently has a Memorandum of Understanding with the Department of Finance for the lease of the Mint premises which has a clause requiring the Mint to restore the premises to their original condition at the conclusion of the lease. The Mint has made a provision to reflect the present value of this obligation.

The provision for restoration is expected to be settled in more than 12 months.

In 2019 the Provision for Restoration and associated asset were re-assessed due to changes in the building industry index and government bond rate. This increase in estimated restoration cost was credited to the Statement of comprehensive income, offset against the change in value of leasehold improvements which had previously had a decrement recognised in the Statement of Comprehensive Income.