Asked by Hannah Hanson on Jun 23, 2024
Verified
The majority of an entity's obligations for removal and restorations costs are incurred during which phase of a project?
A) Evaluation phase.
B) Exploration phase.
C) Development phase.
D) Technical feasibility phase.
Removal and Restorations Costs
The expenses associated with dismantling and removing an asset, and restoring the site on which it was located.
Development Phase
A stage in the lifecycle of a project or product focused on research, design, and development activities before commercial production begins.
- Gain knowledge of the accounting practices related to the obligations of removal and restoration.
Verified Answer
RM
Robert MountJun 24, 2024
Final Answer :
C
Explanation :
The majority of removal and restoration costs are typically incurred during the development phase, when the design and construction plans for the project are finalized, and the actual removal or restoration work can take place.
Learning Objectives
- Gain knowledge of the accounting practices related to the obligations of removal and restoration.