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You are preparing the year-end accounts at the end of 2018 for Nicoson Oil ...

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Accounting

You are preparing the year-end accounts at the end of 2018 for Nicoson Oil
Company Limited. You have been told that anticipated Decommissioning Costs for the Edmonton Field is $250 million, and the work will take place in 2028. The company normally applies a 10% discount factor to future cashflows when converting them to a present-day value.
At the end of year 2021, it was realized that costs expected to be incurred to decommission the field would increase to $280 million.
At the end of year 2021, it was realized that costs expected to be incurred to decommission the field would increase to $280 million. In addition, at the yearend 2026, few years to the decommissioning, the Company estimated that an additional $70 million will be needed increasing the expected decommissioning cost to $350 million. At the time of decommissioning the Field by 31st December 2028 the actual cost incurred for decommissioning is $375 million.
As the Accountant for the Company, you are required to generate the relevant accounting entries for the years ending 2018 to 2028. Clearly indicate which entries are for the Income Statement and the Statement of Financial Position (Balance Sheet)

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