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IAS 37/ PROVISION/UNWINDING

Forums › ACCA Forums › ACCA FR Financial Reporting Forums › IAS 37/ PROVISION/UNWINDING

  • This topic has 3 replies, 2 voices, and was last updated 12 years ago by fidget.
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  • April 4, 2013 at 1:46 pm #121466
    valiaty
    Member
    • Topics: 17
    • Replies: 40
    • ☆☆

    a company in 5 years time will have to pay environmental costs of $5m.
    PV $5m and relevant discount rate is 10%

    Therefore the provision for 5 years will be made for:
    $5m x 0.62092 = 3,104,600

    and the provision for the following year will be:
    $5m x 0.68301 (disc. for 4 years)= 3,415,050

    How will found the amounts of “0.62092 and 0.68301”?

    Thank you

    April 6, 2013 at 10:33 am #121606
    valiaty
    Member
    • Topics: 17
    • Replies: 40
    • ☆☆

    thank you so much!

    April 6, 2013 at 5:33 pm #121637
    fidget
    Member
    • Topics: 8
    • Replies: 203
    • ☆☆☆

    You’re welome! 🙂

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