ASB 117 Liability and EquityDecision CaseZinc Mining Company Ltd. has been approached by a conservation group with regard to its intentions to restore the land on which it is currently conducting open cut mining when the mine is exhausted. The mine has been in operation for more than thirty years. The original agreement that allowed the mine to operate did not include any provision fo.
ASB 117 Liability and Equity
Decision Case
Zinc Mining Company Ltd. has been approached by a conservation group with regard to its intentions to restore the land on which it is currently conducting open cut mining when the mine is exhausted. The mine has been in operation for more than thirty years. The original agreement that allowed the mine to operate did not include any provision for the restitution of the land.
However subsequent agreements in the same area have included such provisions. The CEO has agreed to a meeting with the president of the conservation group who is asserting that Zinc has an obligation to restore the land. Do you believe that Zinc Mining Company Ltd needs to record a liability, a provision or a contingent liability.
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