A Railway Company Is Required, Under Law, to Overhaul Its

A railway company is required, under law, to overhaul its rail-tracks every three years as a safety measure. The appropriate treatment of this event for the purposes of preparing financial statements is:

A) recognise as a provision for future maintenance costs;
B) estimate the future maintenance costs and charge as depreciation over the next three years;
C) disclose in the notes as a contingent liability, but do not recognise;
D) estimate the future cash outflows and discount to determine the amount to be recognised as a deferred liability.