Part B Zootopia Limited is a renowned zoo which attracts great attention due to its wide variety of animals. Company policy requires Zootopia Limited to replace all of its barriers every five years. The barriers were last replaced on 1 July 20X0. When preparing the financial statements for the year ending 30 June 20X1, a suggestion is raised at a meeting of directors that the company should provide, each year for the next five years, 20% of the cost of replacement of the barriers. It is estimated that the replacement cost for new barriers on 1 July 20X5 will amount to 1 000 000. The directors thus propose to recognise a provision of 200 000 in the financial statements for the current year. Required: Discuss whether the recognition of the provision in the financial statements for the year ended 30 June 20X1 is acceptable or not, with reference to International Financial Reporting Standards