The comparative statements of Nextext Ltd, an outdoor advertising company, showed the following information: In 20x8, it
Question:
The comparative statements of Nextext Ltd, an outdoor advertising company, showed the following information:
In 20x8, it came to the attention of Nextest's newly hired financial vice-president that management had re-estimated the cost of removing roof-mounted bilboards and restoring the roofs at the end of 20x7 but had made no adjustment in that year.
The cost estimates at the end of 20x7 had increased by close to 35%, from $425,000 to 5575,000. The average remaining period of time before the roof leases expire and the decommissioning costs are incurred) was eight years from the end of 20X7 Decommissioning costs (le asset retirement obligations are discounted at a rate of 6%.
Financial accounting
ISBN: 978-1118285909
IFRS Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel