Question $2.$ On $1$ October $2014,$ Knight Company commenced drilling for oil from an undersea oilfield. Knight Company is required to dismantle the drilling equipment at the end of its five$-$year licence. This has an estimated cost of $$30m$ on $30$ September $2019.$ Knight Company's cost of capital is $8\%$ per annum and $$1$ in five years' time has a present value of $68$ cents. What is the provision which Knight Company would report in its statement of financial position as at $30$ September $2015$ in respect of its oil operations?

$(20$ marks$)$