What is the carrying amount of the plant asset on December 31, 2014 as a result of the decrease in the decommissioning liability?
On January 1, 2014, the plant of SHELL Inc. which requires decommissioning cost is 10 years old. The cost of the plant is
P12,000,000 with
straight line with no residual value. Because of the unwinding discount of 6% over 10 years, the decommissioning liability has grown
from P1,000,000 to P1,790,000. On January 1, 2014, the discount rate has not changed. However, the entity has estimated that as a
result of technological advances, the
carrying amount of the plant asset on December 31, 2014 as a result of the decrease in the decommissioning liability?
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