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Question 1: Explain whether or not Omega Ltd would be required to recognise a provision.
(a) As a result of its plastics operations, Omega Ltd has contaminated the land on which it operates. There is no legal requirement to clean up the land, and Omega Ltd has no record of cleaning up land that it has contaminated.
(b) As a result of its plastics operations, Omega Ltd has contaminated the land on which it operates. There is a legal requirement to clean up the land.
(c) As a result of its plastics operations, Omega Ltd has contaminated the land on which it operates. There is no legal requirement to clean up the land, but Omega Ltd has a long record of cleaning up land that it has contaminated.
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