BC2 IAS 16 Property, Plant and Equipment requires the cost of an item of property, plant and equipment to include the initial estimate of the costs of dismantling and removing an asset and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period for purposes other than to produce inventories during that period.

BC3 IAS 37 Provisions, Contingent Liabilities and Contingent Assets requires that the measurement of the liability, both initially and subsequently, should be the estimated expenditure required to settle the present obligation at the balance sheet date end of the reporting period and should reflect a current market-based discount rate. It requires provisions to be reviewed at each balance sheet date the end of each reporting period and adjusted to reflect the current best estimate. Hence, when the effect of a change in estimated outflows of resources embodying economic benefits and/or the discount rate is material, that change should be recognised.