Problem
Delta is a mining company. The mine has a 30-year life starting in 2023. It was expected then that site restoration would cost $75 million and a separate property, plant, and equipment account for this ARO (asset retirement obligation) was set up. A 6% discount rate was used to value the related ARO. At the beginning of 2024, an external geo-technical evaluation showed that the eventual cost will be $90 million. Peter recorded the same amounts for 2024 as for 2023 for interest on the ARO and depreciation, and otherwise did not update any accounting for the ARO in 2024 nor did he include the impact if any from the ARO revaluation.
Analyze the issue under IFRS and provide recommendation for the revision.