_{*The prior period financial information has been restated, as described in Note 2 of the Financial Statements.}

Recognition and measurement

Provisions are recognised when Snowy Hydro has a present obligation (legal or constructive) as a result of a past event, it is probable that settlement will be required and the obligation can be reliably estimated. Provisions which are not expected to be settled within 12 months are measured at the present value of the estimated future cash outflows to be made by Snowy Hydro.

• Employee benefits: provision is made for benefits accruing to employees in respect of wages and salaries, annual leave, long service leave and other employee obligations when it is probable that settlement will be required and they are capable of being reliably measured. Provisions made in respect of employee benefits expected to be settled within 12 months are measured at their nominal values using the current remuneration rate. Employee provisions expected to be settled after 12 months are measured at their projected remuneration rate, discounted to their present values.
• Environmental scheme obligation: is recognised when electricity is purchased from the NEM and simultaneously supplied to customers. Regulatory bodies impose a percentage on volume of electricity purchased to determine the number of environmental certificate the purchaser is obliged to surrender. The provision is measured at the present value of cost of certificates required to meet this obligation.
• Site rehabilitation: provision is initially recognised at the best estimate of the costs to be incurred in settling the obligation. Where restoration activities are expected to occur more than 12 months from the reporting period the provision is discounted using a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. The unwinding of the discount is recognised in each period as interest expense.