the notes in the bg group 2007 annual report included the following extract decommis 1571960

The Notes in the BG Group 2007 Annual Report included the following extract:

           

Decommissioning costs The estimated cost of decommissioning at the end of the producing lives of fields is reviewed at least annually and engineering estimates and reports are updated periodically. Provision is made for the estimated cost of decommissioning at the statement of financial position date, to the extent that current circumstances indicate BG Group will ultimately bear this cost. Explain why the provision has been increased in 2006 and 2007 by the unwinding of discount and why these increases are for different amounts.