Decommissioning & Restoration: Provision Added to the Asset Cost
This lesson is part of the course
In this lesson
You measure the obligation to dismantle the paint-shop plant and restore the leased site, add it to the cost of the plant, and work out the 2026 expense: depreciation of the larger asset plus the unwinding of the provision.
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Lessons in this course
- Recognise, Disclose or Ignore? The IAS 37 Decision Table Locked
- Best Estimate for a Large Population: Expected Value of Warranties Locked
- Best Estimate for a Single Obligation: the Most Likely Outcome Locked
- Discounting a Provision and Unwinding the Discount Locked
- Decommissioning & Restoration: Provision Added to the Asset Cost Locked
- Onerous Contracts: Unavoidable Costs vs Economic Benefits Locked
- Restructuring Provisions: What Qualifies and Which Costs Go In Locked
- The Provision Movement Table: Opening, Additions, Used, Released, Unwinding, Closing Locked