The main features of the Exposure Draft are as follows:

• An asset retirement obligation is a legal obligation associated with the retirement of a tangible capital asset.
• Asset retirement costs associated with a tangible capital asset controlled by the entity increase the carrying amount of the related tangible capital asset (or a component thereof) and are expensed in a rational and systematic manner.
• Asset retirement costs associated with an asset no longer in productive use are expensed.
• Subsequent measurement of the liability can result in either a change in the carrying amount of the related tangible capital asset (or a component thereof), or an expense, depending on the nature of the remeasurement and whether the asset remains in productive use.
• Asset retirement obligations include post-retirement operation, maintenance and monitoring.
• A present value technique is often the best method with which to estimate the liability.

Review the Exposure Draft on the PSAB's Web site.