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IFRIC 5 Rights to Interests Arising from Decommissioning, Restoration and Environmental Rehabilitation Funds


The objective of IFRIC 5 is to provide guidance on accounting issues in the context of funds which are set up for the purpose of segregating assets to fund some or all of the costs of decommissioning obligations. IFRIC 5 particularly provides guidance on (i) how contributors should account for their interest in a fund and (ii) when a contributor has an obligation to make additional contributions, how that obligation should be accounted for.

IFRIC 5 becomes effective for annual periods beginning on or after 1 January 2006.

EFRAG has completed its due process regarding IFRIC 5 and has submitted its endorsement advice letter to the European Commission on 15 February 2005.

IFRIC 5 has been adopted by the European Union in November 2005. 

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