Table:
|  | CONSOLIDATED |  |
| --- | --- | --- |
|  | 2019 $’000 | 2018 $’000 |
| Current |  |  |
| Annual leave | 2,349 | 2,233 |
| Long service leave | 830 | 781 |
| Clawback | 2,715 | 2,463 |
| Rebates | 241 | 224 |
|  | 6,135 | 5,701 |
| Non-Current |  |  |
| Long service leave | 418 | 343 |
|  | 418 | 343 |
Paragraphs:
3.6 Provisions
Recognition, measurement and classification
Employee benefits – annual and long service leave
The Group recognises a liability for long service leave and annual leave measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures, and periods of service. Expected future payments are discounted using market yields at the reporting date on corporate bond rates with terms to maturity and currencies that match, as closely as possible, the estimated future cash outflows.
The Group does not expect its long service leave or annual leave benefits to be settled wholly within 12 months of the reporting date.
Annual and long service leave are classified as current where there is a current obligation to pay the employee shall they leave the Group.
Clawback provisions
Upfront fees received from certain insurance funds, broadband providers and mortgage brokers can be clawed back in the event of early termination of membership. They vary across the industries and are usually triggered where a referred member terminates their policy. Each relevant Product Provider has an individual agreement and the clawback period ranges between 0 and 24 months, depending on the agreement.
Key estimates - Employee benefits
Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the reporting date using the discounted cash flow methodology. The risks specific to the provision are factored into the cash flows and as such a corporate bond rate relative to the expected life of the provision is used as a discount rate. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects the time value of money and the risks specific to the liability. The increase in the provision resulting from the passage of time is recognised as interest expense.
Key estimates - Clawback provisions
The Group provides for this liability based upon historic average rates of attrition and recognises revenue net of these clawback amounts.
Question:
How are provisions measured?
Answer: at the present value of management’s best estimate of the expenditure required to settle the present obligation at the reporting date using the discounted cash flow methodology