The government owns a handful of abandoned pulp-mill sites throughout the province. The last active mill has recently shut down. An environmental assessment has been completed and contaminants exceed legislated thresholds, but contamination is contained at the site. The government has not yet hired a consultant to help estimate the cost of remediation. The government has other, similar sites that have been cleaned up recently. However, this new site is far removed from human populations and is unlikely to do damage to the surrounding environment. As a result, the government does not intend to remediate the site. Which of the following accounting conclusions is correct?
a) No liability should be recognized because a reasonable estimate cannot be made.
b) A liability should be recognized.
c) No liability should be recognized because future economic benefits are not expected to be given up.
d) No liability should be recognized because the government is not responsible for the site.