Arnavel has undertaken to clean up land whose soil it contaminated. The expenditure, estimated at 600,000, will be incurred in 4 years; the effect of discounting is material and the pre-tax rate used (case data) is 5%. Compute the provision at the reporting date (rounded to the nearest unit).
- Expected clean-up expenditure
- 600,000
- Pre-tax discount rate (%)
- 5 %
- Years until the expenditure
- 4