Table:
|  |  |  | RESTRUCTURING, ONEROUS |  |
| --- | --- | --- | --- | --- |
|  |  |  | CONTRACTS, STORE EXIT COSTS, |  |
|  | SELF‑INSURED RISKS |  | AND OTHER |  |
|  | 2019 | 2018 | 2019 | 2018 |
|  | $M | $M | $M | $M |
| Movement: |  |  |  |  |
| Balance at start of period | 596 | 593 | 679 | 800 |
| Net provisions recognised/(reversed) (1) | 177 | 161 | 225 | 55 |
| Cash payments | (157) | (148) | (162) | (178) |
| Other | (13) | (10) | (5) | 2 |
| Balance at end of period | 603 | 596 | 737 | 679 |
| Current | 173 | 177 | 280 | 256 |
| Non‑current | 430 | 419 | 457 | 423 |
|  | 603 | 596 | 737 | 679 |
Paragraphs:
Movements in total self‐insured risks, restructuring, onerous contracts, store exit costs, and other provisions
(1) The increase in restructuring, onerous contracts, and store exit costs in 2019 is primarily attributable to the recognition of provisions associated with the BIG W network review as outlined in Note 1.4.
A provision is recognised when the Group has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate can be made as to the amount of the obligation. The amount recognised is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation.
A liability is recognised for benefits accruing to employees in respect of annual leave and long service leave.
Liabilities expected to be settled within 12 months are measured at their nominal values using the remuneration rate expected to apply at the time of settlement.
Liabilities which are not expected to be settled within 12 months are measured as the present value of the estimated future cash outflows to be made by the Group in respect of services provided by employees up to the reporting date.
The provision for self-insured risks primarily represents the estimated liability for workers’ compensation and public liability claims.
Provision for restructuring is recognised when the Group has developed a detailed formal plan for the restructuring and has raised a valid expectation in those affected by the restructuring that the restructuring will occur.
An onerous contract is a contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it. The unavoidable costs under a contract reflect the least net cost of exiting from the contract, which is the lower of the cost of fulfilling it and any compensation or penalties arising from failure to fulfil it.
Question:
When is provision for restructuring recognised?
Answer: Provision for restructuring is recognised when the Group has developed a detailed formal plan for the restructuring and has raised a valid expectation in those affected by the restructuring that the restructuring will occur.