2020. (7 marks) Part B (5 Marks) XYZ Ltd is a mining company and have been in the industry for last 20 years. Currently, it is concerned about the recent exploration and evaluation activities in a specific area which will cause significant damage to the surrounding environment. The state government of the where the area of interest is located has attached strict conditions to the exploration licence for that area. Those conditions require that XYZ Ltd return the environment to its original condition. Required: What would be implications of the above situation for XYZ Ltd's financial statements? Page 7 of 10