G-Waste Limited, a leading waste management company, acquired a parcel of land on January 1, 2014 at a fair value of GHS250,000. The land would be used as a dumping site for an estimated period of 4vears. At the end of the dumping period the company as required to reclaim the land by covering with gravel and grassing at an estimated cost of GHS95,000. The prevailing discount rate for l year Government of Ghana Treasury bill is 21%.

Required

You are required to prescribe how G-Waste should account and disclose this transaction in its 2014 and 2015 Financial Statements.

Answer rating: 100% (QA)

Step 1 arrowforward Restoration liability Restoration liability refers to the amount that i... View the full answer