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SECTION A [ Answer ALL Questions in this Section ] ( 2 0 MARKS ) A company set up a gas exploration site on 1

SECTION A
[Answer ALL Questions in this Section]
(20 MARKS)
A company set up a gas exploration site on 1 January 2018 which will operate for five years. At the end of five years the site will need to be dismantled and the landscape restored. The amount required for dismantling and restoration, discounted at the company's cost of capital of 8%, is GH2,400,000 and a provision is set up for this amount. What is the total amount charged to profit or loss for the year ended 31 December 2019 in respect of these dismantling and restoration costs?
A.GH687,360
B. GH672,000
C. GH207,360
D.GH!in192,000
How do provisions differ from other liabilities?
A. They do not arise as a result of past events.
B. They involve uncertain timing or amount.
C. An outflow of resources is not probable.
D. They are not charged to profit for the year.
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