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Which of the following statements is INCORRECT regarding the recording of the related increase or accretion in the carrying amount of an asset retirement obligation
Which of the following statements is INCORRECT regarding the recording of the related increase or accretion in the carrying amount of an asset retirement obligation (ARO)?
Under IFRS, it is recognized as a borrowing cost.
The amount should be calculated using the same discount (interest rate) as was used to calculate the initial present value of the ARO.
Under ASPE, it is recognized as an operating expense (but not as interest expense).
Under ASPE, it is recognized as interest expense.
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