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According to the environment law, an entity expects to spend 1,050m in one year on 31 December 20X1 and 525m in two years on 31

According to the environment law, an entity expects to spend £1,050m in one year on 31 December 20X1 and £525m in two years on 31 December 20X2 to address the consequences of an oil spill incident. The discount rate is 5%.

What is the accounting treatment of the current provision (i.e provision within current liabilities) at the moment?

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