Wiley GAAP: Financial Statement Disclosure Manual

27ASC 410 ASSET RETIREMENT AND ENVIRONMENTAL OBLIGATIONS

1. Authoritative Literature
   1. Overview
   2. Subtopics
   3. ASC 410‐20, Asset Retirement Obligations
      1. Scope and Scope Exceptions
      2. Recognition
      3. Funding and Assurance Provisions
   4. ASC 410‐30, Environmental Obligations
      1. Scope
      2. Environmental Remediation Liabilities
2. Practice Alert
3. Presentation and Disclosure Requirements
   1. Presentation
      1. ASC 410‐20
      2. ASC 410‐30
   2. Disclosure
      1. ASC 410‐20
      2. ASC 410‐30
4. Presentation and Disclosure Examples
   1. Example 27.1: Accounting Policy, Asset Retirement Obligation
   2. Example 27.2: Reconciliation of Beginning and Ending Carrying Amounts of Asset Retirement Obligations, Using a Discounted Basis
   3. Example 27.3: Environmental Expense Policy and Liability
   4. Example 27.4: Environmental Obligations, Changes in the Carrying Value of Environmental Remediation Liabilities—Optional Disclosures
   5. Example 27.5: Company Records Liabilities for Environmental Remediation Cost on an Undiscounted Basis
   6. Example 27.6: Company Has Been Designated as a Potentially Responsible Party, But Does Not Expect to Incur Material Costs

AUTHORITATIVE LITERATURE

Overview

An asset retirement obligation (ARO) is a legal obligation:

• Established between two or more parties,
• Imposed by the government, or
• Arisen because of a promissory estoppel.

Activities that may result in an ARO because of legal obligations include:

• Removal of asbestos when the related asset is retired,
• Removal of transmission assets, such as transformers and wires,
• Cleanup of landfill ...