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On 1 October 2 0 1 4 , Knight Company commenced drilling for oil from an undersea oilfield. Knight Company is required to dismantle the
On October Knight Company commenced drilling for oil from an undersea oilfield.Knight Company is required to dismantle the drilling equipment at the end of its fiveyear licence. Thishas an estimated cost of $m on September Knight Companys cost of capital is perannum and $ in five years time has a present value of cents. What is the provision which KnightCompany would report in its statement of financial position as at September in respect of itsoil operations?
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