1 The note from BlueScope Steel Limited at 30 June 2021 is provided, showing current provisions and detailed descriptions of some provisions as noted.

BlueScope Steel Limited Notes to the Consolidated Financial Statements 30 June 2021 Consolidated 2021 2020 Current Current

$m $m Annual leave

(d) (i) 94.8 83.5 Long service leave

(d) (i) 137.3 132.9 Redundancy

(d) (ii) 3.8 4.4 Other employee benefits

(d) (iii) 244.8 130.5 Restructure

(e) 3.3 6.7 Product claims

(f) 14.1 16.2 Workers compensation (g) 12.3 12.3 Restoration and rehabilitation (h) 1.9 8.7 Carbon emissions (i) 22.1 13.9 Other provisions 14.6 11.8 Total provisions 549.0 420.9

(d) Employee benefits (i) Annual leave and long service leave The liability for annual leave and long service leave expected to be settled after 12 months is measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using interest rates on high quality corporate bonds other than New Zealand where Government bonds are used, with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.
Amounts not expected to be settled within 12 months for current leave provisions The current provision for long service leave includes all unconditional entitlements where employees have completed the required period of service. The entire annual leave amount and vested portion of long service leave are presented as current. Since the Group does not have an unconditional right to defer settlement, based on past experience, the Group does not expect all employees to take the full amount of accrued annual leave and long service leave or require payment within the next 12 months. Current annual leave and long service leave obligation expected to be settled after 12 months is $152.7M (2020: $127.9M).
(ii) Termination benefits Liabilities for termination benefits, not in connection with a business combination or the closure of an operation, are recognised when the Group is demonstrably committed to either terminating the employment of current employees according to a formal plan without possibility of withdrawal, or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after the end of the reporting period are discounted to present value.
(iii) Short Term Incentive plans (STI)
The Group recognises a liability and an expense for STI plan payments made to employees. The Group recognises a provision where past practice and current performance indicates that a probable constructive obligation exists.

(e) Restructuring costs Liabilities arising directly from undertaking a restructuring program, defined as the closure of an operating site, are recognised when a detailed plan of the restructuring activity has been developed and implementation of the restructuring program as planned has commenced, by either entering into contracts to undertake the restructuring activities or making a detailed announcement such that affected parties are in no doubt the restructuring program will proceed.

(f) Product claims Provision for claims is based on modelled data combining sales volumes with past experiences of repair and replacement levels in conjunction with any specifically identified product faults.
(g) Workers’ compensation In Australia and North America, the Company is a registered self-insurer for workers’ compensation. Provisions are recognised based on calculations performed by an external actuary in relation to the expectation of future events. A contingent liability exists in relation to guarantees given to various state workers’ compensation authorities, due to self-insurance prerequisites.
(h) Restoration and rehabilitation The balance of the provision relates to leased sites that require rectification and restoration work at the end of their respective lease periods.
Recognising restoration, remediation and rehabilitation provisions requires assumptions to be made as to the application of environmental legislation, site closure dates, available technologies and engineering cost estimates.
These uncertainties may result in future actual expenditure differing from the amounts currently provided.

(i) Carbon emissions The Group is a participant in the New Zealand Government’s uncapped Emissions Trading Scheme (ETS).
The emissions liability is recognised as a provision for carbon and is measured at the carrying amount of Emission Units (EUs) held with excess units, if any, held for trading measured at the current market value of EUs.
BlueScope Steel Limited, Annual Report 2020/21, pp. 21–23.
State how each of the following fits the definition of a liability:
1 provision for employee benefits 2 provision for restructure 3 provision for product claims 4 provision for workers’ compensation 5 provision for restoration and rehabilitation 6 provision for carbon emissions.