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Culver's Steelers Inc.(CSI) is a steel manufacturing company located in Ontario.On November1,2021,CSI acquired land on...

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Accounting

Culver's Steelers Inc.(CSI) is a steel manufacturing company located in Ontario.On November1,2021,CSI acquired land on which it constructed a facility for steel manufacturing purposes.Since its manufacturing produces excessive waste,the government of Ontario has imposed a requirement for CSI to clean up property.As part of its agreement with thr province of Ontario,CSI is allowed to operate on this site for only 15 years after which time CSI estimates it will need to incur $2 000 000 to clean up the site.Culver wentahead with the construction of the building and recognized the asset retirement obligation at that time.The company's discount rate is 9%and CSI reports under IFRS with a December31 year end. (a)What adjusting journal entry should CSI have made to initial recognize the ARO under IFRS

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