CICPA Accounting
CICPA CPA Accounting (注册会计师 会计, China)
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On January 1, 2025, Entity D purchases a nuclear power generating plant for a cash payment of RMB 50,000,000. Under national environmental safety regulations, Entity D has a legal obligation to dismantle the facility and restore the site at the end of its 20-year operational life. The estimated decommissioning expenditure in 20 years is RMB 10,000,000. The applicable market discount rate reflects current market assessments of the time value of money at 6% per annum (Present Value Factor for a single sum at 6% for 20 years is 0.3118). What is the initial cost of the fixed asset recognized on January 1, 2025 under CAS 4?
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