c$)$

$(5$ Marks$)$

Sunflower plc design and built an LPG storage tank at an amount of $40$

million. It's a company policy to depreciate the storage tank within $20$

years. Sunflower plc has a contractual commitment to deactivate the LPG

storage tank at the end of its economic life and the approximate outflow of

economic resources of deactivate are

$30$ million in $20$ years' period. The annual required rate is $10\%$ and the

present value of outflow is $4\mathrm{.}458$ million.

Required

What provision for environmental remediation should be created in the

book of accounts of Sunflower plc in accordance with IAS $37?$