Your company has polluted the local river during the clearing of land for a new construction project. Under current environmental law, the company will be required to clean-up the river upon completion of the project. The construction of the project is estimated to take three years. The current expected estimate of the costs to clean-up the river is $500,000.

Discuss how your company should record this event in its accounting records, providing evidence to justify your decision

 

Answer rating: 100% (QA)

Answer The company should record this event as an environmental liability on its balance sheet The l... View the full answer