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ACCOUNTING TREATMENT OF TERMINAL COSTS

Statistics Directorate    
Definition:
The decommissioning costs should be recorded as capital formation when they are actually incurred but the deduction of these costs from income via consumption of fixed capital will have been made progressively over the life of the asset just as the “replacement costs” are.

Source Publication:
United Nations, European Commission, International Monetary Fund, Organisation for Economic Co-operation and Development, World Bank , 2005, Handbook of National Accounting: Integrated Environmental and Economic Accounting 2003, Studies in Methods, Series F, No.61, Rev.1, Glossary, United Nations, New York, para. 6.67.

Statistical Theme: Environmental statistics

Created on Monday, July 04, 2005

Last updated on Tuesday, April 23, 2013