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Sir could you please explain me the meaning of decomissioning cost,and discounting as well.Many thanks
Decommissioning costs are the costs of stopping a factory from producing or of stopping some PPE from producing
Commissioning costs are those costs involved in (having bought some PPE) installing the machinery to reach the situation where the machinery can now be brought into action.
Decommissioning costs are those costs involved in taking the machine out of action
The concept of discounting?! Check out the free F9 notes on this site where you can hear lectures by John Moffat explaining the concept of present values. Basically, it’s trying to find a “today” value of an amount payable or receivable some time in the future at a given cost of capital
OK?
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