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dismantling costs

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › dismantling costs

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by Stephen Widberg.
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  • January 7, 2021 at 6:19 am #601784
    Noah098
    Member
    • Topics: 935
    • Replies: 352
    • ☆☆☆☆☆

    Sir I understand that we increase our liability by unwinding the discount factor each year and debiting the SPL alongside crediting the liability. But still this entry nowhere really tells us that we will have enough cash available at the end of the project when real dismantling will take place and that we will be able to meet this expense.

    Many thanks!

    January 7, 2021 at 1:51 pm #601820
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3441
    • ☆☆☆☆☆

    You are correct but FR / SBR is not about cash availability – that’s something for the Treasury department to sort out.

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