Karnalyte Resources Inc T.KRN

Any accountants out there?

[mdjbrown]

T33, maybe you, or possibly someone else here with an accounting background can answer this question.
 
If I am reading the following statement correctly, it would imply the decommissioning liability was arbitrarily changed in Q4 2018 based on an estimated increase in that liability:
 
“The increase in the fourth quarter of 2018 and all the quarters in 2019 is due to a significant increase in the decommissioning liability recorded due to a change in the estimate of this liability made during the fourth quarter of 2018.” 
 
With that, would it not be just as reasonable that the decommissioning liability could be arbitrarily reduced due to a significant decrease in the estimate of this liability made during the third quarter of 2021?
 
If that is the case, why would any monetary amount be attached to this liability for settlement as this liability increase was nothing more than an accounting shift on paper deemed to incur in 2038.
 
What exactly requires settling, whats the amount, and what’s the rush if no money ever changed hands between Krn and the government of Saskatchewan for decommissioning?

[Trade33right]

I know I am not an expert in these things, maybe someone at a regulatory body could explain it. There must be a precedent. 

[mdjbrown]

Very confusing for sure T33 but in complete fairness, the current Krn Board of Directors and management were either not with Karnalyte in Q4 2018 or likely had no direct input into the decision to increase the decommissioning liability. Maybe after closer review the current Board has decided the liability increase wasnt necessary due to lack of advancement of the Wynyard Project since late 2016.