On $1$ January $20$X$6,$ Scrubber spent $$5$m on erecting infrastructure and machinery near to an area of natural beauty. These assets will be used over the next three years. Scrubber is well$-$known for its environmentally friendly behavior and is therefore expected to restore the site after its use.

The estimated cost of removing these assets and cleaning up the area on

$1$ January $20$X$9$ is $$3$m$.$

The pre$-$tax, risk$-$specific discount rate is $10\%.$ Scrubber has a reporting date of $31$ December.

Required:

Explain how the above should be treated in the financial statements of Scrubber.