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Question - An entity subject to IFRS operates an airport. A small piece of land adjacent to the airport is used to store chemicals required to operate aircraft. Current environmental legislation requires the entity to restore the land at the end of its use. The entity has estimated that it will likely cost about $800,000 to restore the land at the end of the airport's useful life of 30 years. This amount is disclosed in the notes to the financial statements. The entity started using the land for this purpose at the beginning of the current year and is in the process of finalizing their financial statements for the year ending December 31, 20x1.
Please provide a resolution to each AO and ensure that the resolution is well supported by appropriate standard references.
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