to future business operations. Restructuring measures may include the sale or  termination of business units, site closures, and relocation of business activities,  changes in management structure or a fundamental reorganisation of  departments or business units. These amendments require an entity to disclose information about rights to set- off and related arrangements (e.g. collateral agreements). These amendments  will not impact the Group’s financial position or performance.  IFRS 13 establishes a single source of guidance under IFRS for all fair value  measurements. IFRS 13 will not have a material impact on the Group’s financial  position or performance. These improvements will not have a material impact on the Group.  IFRS 9, as issued, reflects the first phase of the IASB’s work on the replacement  of IAS 39 and applies to classification and measurement of financial assets and  financial liabilities as defined in IAS 39. In subsequent phases, the IASB will  address hedge accounting and impairment of financial assets. The Group will  quantify the effect in conjunction with the other phases, when the final standard  including all phases is issued. There are no other IFRSs or IFRIC interpretations that are not yet effective that  would be expected to have a material impact on the Group. The preparation of the Consolidated Financial Statements in accordance with  IFRS requires management to make certain estimates, assumptions and  judgements that affect the application of accounting policies and the reported  amounts of assets, liabilities, income and expenses at the end of the reporting  period. Management believes that the estimates, assumptions and judgements  upon which it relies are reasonable based on the information available to it at the  time that those estimates, assumptions and judgements are made. In some  cases, the accounting treatment of a particular transaction is specifically dictated  by IFRS and does not require management’s judgement in its application.  Management consider that their use of estimates, assumptions and judgements  in the application of the Group’s accounting policies are inter-related and  therefore discuss them together below. The critical accounting policies which  involve significant estimates or assumptions or judgements, the actual outcome  of which could have a material impact on the Group’s results and financial  position outlined below, are as follows: A provision is recognised when the Group has a present obligation (either legal or  constructive) as a result of a past event, it is probable that a transfer of economic  benefits will be required to settle the obligation and a reliable estimate can be  made of the amount of the obligation. Where the Group anticipates that a  provision will be reimbursed, the reimbursement is recognised as a separate  asset only when it is virtually certain that the reimbursement will arise. The  expense relating to any provision is presented in the Consolidated Income  Statement net of any reimbursement. Provisions are measured at the present  value of the expenditures expected to be required to settle the obligation. The  increase in the provision due to passage of time is recognised as interest  expense. Provisions arising on business combination activity are recognised only  to the extent that they would have qualified for recognition in the financial  statements of the acquiree prior to acquisition. Provisions are not recognised for  future operating losses. Provisions for rationalisation and redundancy are established when a detailed  restructuring plan has been drawn up, resolved upon by the responsible decision- making level of management and communicated to the employees who are  affected by the plan. These provisions are recognised at the present value of  future disbursements and cover only expenses that arise directly from  restructuring measures, are necessary for restructuring and exclude costs related  The net surplus or deficit arising on the Group’s defined benefit pension schemes,  together with the liabilities associated with the unfunded schemes, are shown  either within non-current assets or non-current liabilities in the Consolidated  Balance Sheet. The deferred tax impact of pension scheme surpluses and deficits  is disclosed separately within deferred tax assets or liabilities as appropriate.  Actuarial gains and losses are recognised immediately in the Consolidated  Statement of Comprehensive Income. When the benefits of a defined benefit scheme are improved, the portion of the  increased benefit relating to past service by employees is recognised as an  expense in the Consolidated Income Statement on a straight-line basis over the  average period until the benefits become vested. To the extent that the enhanced  benefits vest immediately, the related expense is recognised immediately in the  Consolidated Income Statement.  The liabilities and costs associated with the Group’s defined benefit pension  schemes (both funded and unfunded) are assessed on the basis of the projected  unit credit method by professionally qualified actuaries and are arrived at using  actuarial assumptions based on market expectations at the balance sheet date.  The discount rates employed in determining the present value of the schemes’  liabilities are determined by reference to market yields at the balance sheet date  on high-quality corporate bonds of a currency and term consistent with the  currency and term of the associated post-employment benefit obligations.  Costs arising in respect of the Group’s defined contribution pension schemes are  charged to the Consolidated Income Statement in the period in which they are  incurred. The Group has no legal or constructive obligation to pay further  contributions in the event that the fund does not hold sufficient assets to meet its  benefit commitments. Retirement benefit obligations – Note 28 The status of each significant claim and legal proceeding in which the Group is  involved is reviewed by management on a periodic basis and the Group’s potential  financial exposure is assessed. If the potential loss from any claim or legal  proceeding is considered probable, and the amount can be estimated, a liability is  recognised for the estimated loss. Because of the uncertainties inherent in such  matters, the related provisions are based on the best information available at the  time; the issues taken into account by management and factored into the  assessment of legal contingencies include, as applicable, the status of settlement  negotiations, interpretations of contractual obligations, prior experience with  similar contingencies/claims, the availability of insurance to protect against the  downside exposure and advice obtained from legal counsel and other third  parties. As additional information becomes available on pending claims, the  potential liability is reassessed and revisions are made to the amounts accrued  where appropriate. Such revisions in the estimates of the potential liabilities could  have a material impact on the results of operations and financial position of the  Group.  The measurement of environmental and remediation provisions is based on an  evaluation of currently available facts with respect to each individual site and  considers factors such as existing technology, currently enacted laws and  regulations and prior experience in remediation of sites. Inherent uncertainties  exist in such evaluations primarily due to unknown conditions, changing  governmental regulations and legal standards regarding liability, the protracted  length of the clean-up periods and evolving technologies. The environmental and  remediation liabilities provided for in the Consolidated Financial Statements reflect  the information available to management at the time of determination of the liability  and are adjusted periodically as remediation efforts progress or as additional  technical or legal information becomes available. Due to the inherent uncertainties  described above, many of which are not under management’s control, the  accounting for such items could result in different amounts if management used  different assumptions or if different conditions occur in future accounting periods.  – IFRS 13  Fair Value Measurement  – Annual Improvements May 2012  (iii) IFRS and IFRIC interpretations effective subsequent to the CRH 2013  financial year-end: – IFRS 9  Financial Instruments - Classification and Measurement  effective 1  January 2015 Key Accounting Policies which involve Estimates, Assumptions and  Judgements Environmental and remediation provisions  Legal contingencies  Provisions for liabilities – Note 26 Rationalisation and redundancy provisions CRH 77