Jane’s Oil Inc. (JOI) installed an offshore oil drilling platform. The terms of the government’s approval to drill requires JOI to dismantle and remove the platform upon completion of drilling. JOI estimates that it will take eight years to exhaust the proven reserves of oil at the site. Dismantling and removal costs are estimated to be $3 million. An appropriate interest rate for this obligation is 4%.

Required:
a. Prepare the journal entry to record the site restoration obligation assuming that JOI reports its financial results in accordance with IFRS.
b. Prepare the journal entry to record the site restoration obligation assuming that JOI reports its financial results in accordance with ASPE.