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PROVISIONS

Forums › ACCA Forums › ACCA SBR Strategic Business Reporting Forums › PROVISIONS

  • This topic has 4 replies, 2 voices, and was last updated 15 years ago by black.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • November 30, 2010 at 2:25 pm #46427
    black
    Member
    • Topics: 10
    • Replies: 16
    • ☆

    what is decommisioning or abandonment cost with reference to IAS 37 ?

    November 30, 2010 at 8:49 pm #72150
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23359
    • ☆☆☆☆☆

    Decommissioning ( in the context of, for example, a nuclear power plant ) is where you have to break down / demolish the asset at the end of its life.

    Abandonment is literally that – walking away from the asset.

    November 30, 2010 at 11:01 pm #72151
    black
    Member
    • Topics: 10
    • Replies: 16
    • ☆

    oh thankyou but why do we want to make a provision for it?

    December 1, 2010 at 11:01 am #72152
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23359
    • ☆☆☆☆☆

    If we are OBLIGED to decommission – either contractually, legally or even constructively – the it’s an obligation which needs to be recognised. That’s why we provide

    December 1, 2010 at 6:17 pm #72153
    black
    Member
    • Topics: 10
    • Replies: 16
    • ☆

    ok thanku 🙂

  • Author
    Posts
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