• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

Provision

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Provision

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • April 25, 2021 at 2:25 pm #618819
    suleymanabuzerli
    Member
    • Topics: 84
    • Replies: 32
    • ☆☆

    On 1 October 20X3, Xplorer commenced drilling for oil in an undersea oilfield. The extraction
    of oil causes damage to the seabed which has a restorative cost (ignore discounting) of
    $10,000 per million barrels of oil extracted. Xplorer extracted 250 million barrels of oil in the
    year ended 30 September 20X4.
    Xplorer is also required to dismantle the drilling equipment at the end of its five?year licence
    This has an estimated cost of $30 million on 30 September 20X8. Xplorer’s cost of capital is
    8% per annum and $1 has a present value of 68 cents in five years’ time.
    What is the total provision (extraction plus dismantling) which Xplorer would report in its
    statement of financial position as at 30 September 20X4 in respect of its oil operations?
    A $34,900,000
    B $24,532,000
    C $22,900,000
    D $4,132,000

    please help me for solution of this question

    understandable and detailed explanation is very useful for me

    thanks!

    April 29, 2021 at 8:52 pm #619221
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6451
    • ☆☆☆☆☆

    Again, as I said in the previous post, please attempt the question first so that I can then explain where you are going wrong and then point you in the direction of how to get it right. You will understand the topic better then.

    Thanks

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • cBarsoum on Audit Risk – ACCA Audit and Assurance (AA)
  • allistair.a@gmail.com on Digital strategy – CIMA E3
  • John Moffat on Statement of Cash Flows (part b) Example 1 – ACCA Financial Accounting (FA) lectures
  • Joanne94 on Statement of Cash Flows (part b) Example 1 – ACCA Financial Accounting (FA) lectures
  • cBarsoum on The Stages of an Audit – Appointment – ACCA Audit and Assurance (AA)

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy