In one of the practice questions in BPP it asks to report the total provision to be shown in the SFP. They have included the provision for restoration of seabed and for dismantling of equipment, they have also added the unwinding of the discount. I thought this was a finance cost to be shown on SPL. Can you please clarify? Cheers
The entry for the unwinding of the discount is to DR Finance costs CR Provision. The amount of the provision therefore increases by the amount of the unwinding.