The Decommissioning Asset on your DRO Plan

Applies to: DRO (IAS 37) module | Audience: Customers | Last reviewed: 08/04/2026

• How the decommissioning asset is produced
• Where the decommissioning asset appears in Balance
• The decommissioning asset overview
• Consistency with rest of the module

What the decommissioning asset is built from

The decommissioning asset and its depreciation are specific to the asset subtype. There is no separate process for creating them; they result from four decisions made earlier, during configuration and planning:

• The account subtype
• The depreciation type and policy
• The cost plan and the end of life date
• Each approved plan change since

The account subtype

Setting the account subtype to asset during configuration enables the decommissioning asset and depreciation. Neither is available on an expense account, so both capabilities derive from that single configuration decision.

The depreciation type and policy

The depreciation type and policy are set before any plan is created, and they lock once a plan exists. Together they govern how the decommissioning asset draws down over time.

The cost plan and the end of life date

The cost plan serves two purposes. The nominal cost of the future decommissioning, discounted to present value, is capitalized as the decommissioning asset, so a single entry establishes both the provision and the asset.

The End of Life Date set on the plan Summary defines the period over which the asset depreciates, and it determines the Remaining Life shown on the account.

Each approved plan change since

Each approved change that revises the cost also revises the decommissioning asset. These revisions are recorded as additions to the original asset.

Where the decommissioning asset appears in balance

The Balance Summary presents the asset specific cards: Decommissioning Asset Book Value, with Accumulated Depreciation shown beneath it, alongside the EPV Provision Balance, the Last Weighted Average Plan, and the Asset End of Life.

The decommissioning asset overview

The Decommissioning Asset Overview panel consolidates these inputs. Read from top to bottom, it shows:

• Original Decommissioning Asset, from the initial cost plan
• Additional revisions, from subsequent plan changes
• Less life to date depreciation, determined by the depreciation type
• The resulting Decommissioning Asset Balance, with the End of Life and Remaining Life shown alongside

Consistency with the rest of the module

Two aspects of the asset subtype are consistent with the rest of DRO:

• Accretion, shown as Unwinding of Discount, and depreciation operate exactly as they do elsewhere in the platform. They run within DRO’s no-layers structure, in which each change replaces the prior plan.
• Change in Discount and Change in Estimate apply to an asset plan in the same way as to any other. The decommissioning asset is an additional element, not a change to how adjustments are calculated.

• Depreciation methods and the depreciation schedule
• Configuring DRO planning type and subtype
• Change in discount versus change in estimate
• Creating an initial DRO plan