businesses in New South Wales. In particular, management makes estimates and judgements in respect of:
- planned remediation activities, including methods and technologies to be applied, the possibility that applicable laws and standards may change with time, obtaining necessary regulatory/council approvals, and information available about the conditions at the individual sites; and
- forward looking assumptions app led to futurę cash outflows associated with planned remediation activities for each site. The main assumptions include timing and value of expected costs, as well as futurę economic assumptions such as inflation and discount rates.
Due to the complex and specialised naturę of the activities to be undertaken, management engage external environmental remediation experts to assist in assessing planned remediation activities and the associated costs.
management committees and internal legał claims registers, as well as discussions with internal legał counsel and sen or management. We assessed the consistency of this information against management's assessment of the provisions;
• considering the impact of relevant current statutory and regulatory obligations, and our understanding of their futurę direction, on expected futurę cash outflows. We assessed the consistency of correspondence with the Environmental Protection Authority and other regulatory bodies on such matters against managemenfs cash outflow assumptions;
• obtaining correspondence from the Group's solicitors to confirm whether there has been any significant legał proceedings to which the group was a party and inspecting any re evant egal correspondence, to assess the accuracy and completeness of environmental provisions recorded by management;
• checkmg the mathematical accuracy of provision calculations based on discounted forecast cash flows and considered the naturę and completeness of the costs to be incurred, including consideration of project risks and uncertainties, against accounting standard requirements; and
• evaluating available contracts with. and tenders received from. external environmental remediation contractors engaged by management as to planned remediation activities for each site and associated costs. In respect of this, we:
- assessed the scope of work, in particular the planned remediation activities identified and associated forecast costs;
- compared the contracts and tenders with management's assumptions in the forecast cash flow models for each site; and
- used our business and industry knowledge, correspondence from environmental and other bodies. and discussions with management to corroborate and chał enge the reasonableness of managemenfs assumptions as to the most likely courses of action and probab lity of futurę cash outflows.