Annual Report 2019

213 Transport International Holdings Limited 2019 Annual Report Notes to the Financial Statements 25 Contingency provision – insurance 2019 2018 $’ 000 $’ 000 At 1 January 386,397 473,354 Provision charged to profit or loss 55,142 11,122 Payments made during the year (70,862) (98,079) At 31 December 370,677 386,397 Representing: Current portion 126,350 145,040 Non-current portion 244,327 241,357 370,677 386,397 The Group is involved from time to time in litigation and claims in connection with its bus operations. Contingency provision – insurance represents amounts set aside annually by the Group to meet liabilities which are expected to arise from third party claims for incidents which have occurred prior to the end of the reporting period in connection with the Group’s bus operations. 26 Lease liabilities The following table shows the remaining contractual maturities of the Group’s lease liabilities at the end of the current reporting period and at the date of transition to HKFRS 16: 31 December 2019 1 January 2019 (Note) Present value of the minimum lease payments Total minimum lease payments Present value of the minimum lease payments Total minimum lease payments $’ 000 $’ 000 $’ 000 $’ 000 Within 1 year 3,907 4,042 3,122 3,272 After 1 year but within 2 years 3,111 3,162 3,830 3,912 7,018 7,204 6,952 7,184 Less: total future interest expenses (186) (232) Present value of lease liabilities 7,018 6,952 Note: The Group has initially applied HKFRS 16 using the modified retrospective approach and adjusted the opening balances at 1 January 2019 to recognise lease liabilities relating to leases which were previously classified as operating leases under HKAS 17. These liabilities have been aggregated with the brought forward balances relating to leases previously classified as finance leases. Comparative information as at 31 December 2018 has not been restated and relates solely to leases previously classified as finance leases. Further details on the impact of the transition to HKFRS 16 are set out in note 1(c).