The Notes in the BG Group 2015 Annual Report included the following extract:

Explain why the provision has been increased in 2014 and 2015 by the unwinding of discount and why these increases are for different amounts.

Transcribed Image Text:

Provisions for liabilities Decommissioning As at 1 January Unwinding of discount 2011 m 4,605 131 2010 m 3,662 146 Decommissioning costs The estimated cost of decommissioning at the end of the producing lives of fields is reviewed at least annually and engineering estimates and reports are updated periodically. Provision is made for the estimated cost of decommissioning at the statement of financial position date, to the extent that current circumstances indicate BG Group will ultimately bear this cost.