As discussed in the chapter, Hanson Plc incurred an environmental liability from its 1991 acquisition of the U.S. firm Beazer. In 1997 the company reported that, based on third party appraisal, its estimate could be reduced by £430.3 million. In 1998 Hanson agreed to pay further costs of £168 million, and two insurance companies guaranteed to cover any remaining costs up to £488 million. After the agreement,

£67 million of the estimated liability was no longer required and was recorded as an unusual credit. What are the financial statement effects of these events?

AppendixLO1