Poor Decommissioning Liability Accounting
Definition
Accounting standards require recognizing PV of decommissioning costs (e.g., CU70,400 example) with annual adjustments for discount rates, leading to revaluation surpluses or writedowns.
Key Findings
- Financial Impact: AUD 5-10M per plant in annual liability adjustments/depreciation errors (9-15% of capex)
- Frequency: Annually during financial reporting
- Root Cause: Complex discounting models, failure to segregate decommissioning components
Why This Matters
The Pitch: Nuclear firms in Australia 🇦🇺 incur AUD 5-10M annual adjustments from liability misstatements. Automated IPSAS/AASB modeling prevents this.
Affected Stakeholders
Financial Controller, Actuary, External Auditors
Deep Analysis (Premium)
Financial Impact
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Current Workarounds
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
Decommissioning Cost Overruns
Idle Equipment from CAP Delays
ARPANSA CAP Non-Compliance Fines
CAP Rework Costs from Ineffective Management
Emergency Response Drill Costs
Non-Compliance Drill Penalties
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