Estimated Decommissioning Costs

Under TFRS for NPAEs paragraph 127, the cost of an item of property, plant and equipment includes an estimated cost of dismantling and removing the asset and restoring the site. Such cost will be recognised as both an asset and liability in the financial statements.

Keywords: Mazars, Thailand, Accounting, NPAEs, TFRS

27 March 2015

When recording the estimated decommissioning costs of an asset, the entity shall depreciate the decommissioning cost over its remaining useful life and disclose such fact in the notes to the financial statements.