Eco Waste Srl, a waste disposal company, acquires a new disposal plant for 300 million. The...
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Eco Waste Srl, a waste disposal company, acquires a new disposal plant for €300 million. The legislation of the country in which the company operates requires the company to support the cost for the reclamation of the land on which the plant is located when operation is complete. It is estimated that the plant has a useful life of 30 years. The cost of reclamation is estimated to be €60 million. The discount rate is estimated to be 12%. The present value of the liability for reclamation is €2,002,675 and will be recognized in accordance with IAS 37. At what amount should Eco Waste Srl initially recognize the plant? Eco Waste Srl, a waste disposal company, acquires a new disposal plant for €300 million. The legislation of the country in which the company operates requires the company to support the cost for the reclamation of the land on which the plant is located when operation is complete. It is estimated that the plant has a useful life of 30 years. The cost of reclamation is estimated to be €60 million. The discount rate is estimated to be 12%. The present value of the liability for reclamation is €2,002,675 and will be recognized in accordance with IAS 37. At what amount should Eco Waste Srl initially recognize the plant?
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Related Book For
Modern Advanced Accounting In Canada
ISBN: 9781259066481
7th Edition
Authors: Hilton Murray, Herauf Darrell
Posted Date:
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