An oil exploration company has an obligation to restore the mining site after ceasing operation. The...
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An oil exploration company has an obligation to restore the mining site after ceasing operation. The cost of restoration recognised is RM 5 million. The carrying amount of the mine is RM 14 million. The fair value less costs to sell is RM 11 million with the buyer assuming the liability to restore the site in the future. The value in use is RM 13 million which excludes the restoration cost. Calculate the recoverable amount of the mining site. An oil exploration company has an obligation to restore the mining site after ceasing operation. The cost of restoration recognised is RM 5 million. The carrying amount of the mine is RM 14 million. The fair value less costs to sell is RM 11 million with the buyer assuming the liability to restore the site in the future. The value in use is RM 13 million which excludes the restoration cost. Calculate the recoverable amount of the mining site.
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The recoverable amount is the higher of the fair value less costs to sell ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
Posted Date:
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