Chapter 27ASC 410 Asset retirement and Environmental Obligations

Perspective and Issues

   Subtopics

   Scope and Scope Exceptions

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

   ASC 410-20, Asset Retirement Obligations

   ASC 410-30, Environmental Obligations

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 use as they are not associated with the retirement of the asset.
  4. Historical waste held by private households.
  5. Obligations of a lessee in connection with leased property, whether imposed by a lease agreement or by a party other than the lessor, that meet the definition of either minimum lease payments or contingent rentals in paragraphs.
  6. An obligation ...

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