I. Theoretical Analysis of Restoration Liability Accounting
Firms in the extractive industry usually follow a general pattern of evaluation & exploration, development, production, and finally rehabilitation of the site. According to the AASB Framework, “A liability is a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.” (AASB Framework #49a, 2004, p.22) Looking deeper than just the legal form of the mining asset, the economic benefit from the land in such a scenario where the asset (mining site) is leased or bought would flow to the entity rather than its legal owner. Hence, the liabilities corresponding with the site shall also fall upon the company. One such liability is the cost of rehabilitation or restoration of the site at the end of its economic life.
The AASB Framework defines an Obligation as “a duty or responsibility to act or perform a certain way.” (AASB Framework #60, 2004, p.25) The restoration obligation should meet the criteria for a present obligation so as to fully satisfy the definition of a liability. In addition, this item should also meet the recognition criteria for a liability to be recorded in a company’s financial statements, whereby the future economic benefits associated with the item are probable and its cost can be measured reliably. (AASB Framework #83, 2004, p.30)
According to the AASB Framework, “An obligation normally arises only when the asset is delivered or the entity enters into an irrevocable agreement to acquire the asset. In the latter case, the irrevocable nature of the agreement means that the economic consequences of failing to honour the obligation, for exam...
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ii) If one is the owner or operator, liability may attach even if some other
n. The legal or regulatory obligation imposed on an officer or other person for keeping accurate record of property, documents, or funds. The person having this obligation may or may not have actual possession of th...
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Liability in restitution with disgorgement of profit is an alternative to liability for contract damages measured by injury to the promisee.” (2011)
[4] Colin Drury, Management and Costing Accounting, (7th edition), Chapter 3, Cost Assignment, p. 54-59
Imagine you’re young, and alone. If your family was taken from you and suffered horribly for your freedom, would you want to be repaid in some form? In the article “The Case for Reparations” Ta-Nehisi Coates discusses a great deal of information about reparations, and if they should be given. Reparations are when a person or people make amends for the wrong they have done. Ta-Nehisi believes that from two hundred years of slavery, ninety years of Jim Crow laws, sixty years of separate but equal, and thirty five years of racist housing policy, that America is shackled. Only if we face the compounding moral debt can America be free. Until we face the reality of what happened together, we will always be bound by the lies that have been told.
Objectives • To evaluate the difficulty of mining and reclamation To calculate costs, expenses, income, and profit from a hands-on mining exercise. • To evaluate the effectiveness of reclamation and its added costs to mining. To describe the increasing rarity of some non-renewable mineral resources. Introduction Minerals play an important role in our day-to-day life, but we often do not contemplate how the minerals are obtained. Minerals are scattered all over the world, just like any other resource.
Cross, Frank B., and Roger LeRoy Miller. "Ch. 13: Strict Liability and Product Liability." The legal environment of business: text and cases, 8th edition. Mason, Ohio: Cengage Learning Custom Solutions, 2012. 294-297. Print.
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It should be pres... ... middle of paper ... ... o monitor the health of the company and also to make the right choices. They are the most important users of financial information as without this group using the information properly the company could cease to survive. Bibliography Biz/ed 2004, Accounting [Online], available http://www.bized.ac.uk Duncan Williams 2004, User of Financial Statements, [online], available http://www.duncanwill.co.uk Finance Demon 2004, User of Financial Information, [online], available http://www.financedemon.co.uk Financial Reporting Council 2004, About the FRC [online], available http://www.asb.org.uk Hacker Young Chartered Accountants 2004, Accounts Explained [online], available http://www.account-explained.co.uk Joe Corbett 2004, Class Notes, Borders College, Galashiels
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