Perspective and Issues
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:
- Obligations that arise solely from a plan to sell or otherwise dispose of a long-lived asset.
- An environmental remediation liability that results from the improper operation of a long-lived asset.
- Activities necessary to prepare an asset for an alternative use as they are not associated with the retirement of the asset.
- Historical waste held by private households.
- 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.
- An obligation ...