According to IAS 37 Provisions, Contingent Liabilities and Contingent Assets how much should Helander include in provisions in its statement of financial position as at 31 December 2021? A £500,000 B £254,000 £535,000 £271,780 CD с

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Q5
Helander obtained a government licence to operate a mine from 1 January 2021. The
licence requires that, at the end of the mine's useful life, all buildings must be removed from
the site and the site landscaped. Helander estimates that the cost of this decommissioning
work will be £500,000 in ten years' time (present value at 1 January 2021 = £254,000)
using a discount factor of 7%.
According to IAS 37 Provisions, Contingent Liabilities and Contingent Assets how much
should Helander include in provisions in its statement of financial position as at 31
December 2021?
£500,000
£254,000
£535,000
£271,780
ABCD
Transcribed Image Text:Q5 Helander obtained a government licence to operate a mine from 1 January 2021. The licence requires that, at the end of the mine's useful life, all buildings must be removed from the site and the site landscaped. Helander estimates that the cost of this decommissioning work will be £500,000 in ten years' time (present value at 1 January 2021 = £254,000) using a discount factor of 7%. According to IAS 37 Provisions, Contingent Liabilities and Contingent Assets how much should Helander include in provisions in its statement of financial position as at 31 December 2021? £500,000 £254,000 £535,000 £271,780 ABCD
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