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Chapter 10
3.4 Decommissioning costs
If an obligation exists to decommission an asset, a provision should be made for the
future costs.
The costs are capitalised as part of the cost of the asset:
Dr Property, plant and equipment (SFP) X
Cr Provision (SFP) X
Illustrations and further practice
Now try TYU questions 3, 6 and 8 from Chapter 10.
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