Wiley GAAP 2014: Interpretation and Application of Generally Accepted Accounting Principles

27   ASC 410 ASSET RETIREMENT AND ENVIRONMENTAL OBLIGATIONS

Perspective and Issues

Subtopics

Scope and Scope Exceptions

Definitions of Terms

Concepts, Rules, and Examples

Asset Retirement Obligations

Asset retirement obligations requiring recognition

Examples of the scope of ASC 410-20

Example of timing of recognition

Example of ongoing additions to the obligation

Accounting considerations

Accounting in subsequent periods

Other provisions

Example—initial measurement and recognition

Example—accounting in subsequent periods

Electronic equipment waste obligations

Environmental Remediation Costs

Environmental remediation liabilities

PERSPECTIVE AND ISSUES

Subtopics

ASC 410, Asset Retirement and Environmental Obligations, consists of three subtopics:

• ASC 410-10, Overall, which merely points out the differences between the other two Subtopics
• ASC 410-20, Asset Retirement Obligations, which provides guidance on asset retirement obligation and environmental remediation liabilities resulting from normal operations of long-lived assets
• ASC 410-30, Environmental Obligations, which provides guidance on environmental remediation liabilities.

Scope and Scope Exceptions

ASC 410-20 applies to all entities. It does not apply to these transactions:

1. Obligations that arise solely from a plan to sell or otherwise dispose of a long-lived asset
2. An environmental remediation liability that results from the improper operation of a long-lived asset
3. Activities necessary to prepare an asset for an alternative ...