Asset Retirement Obligations – Basis for Conclusions and new standard

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Aug 01, 2018

On August 1, 2018, the Public Sector Accounting Board (PSAB) released the new standard, "Asset Retirement Obligations", Section PS 3280. They also released the Basis for Conclusions, which sets out how the PSAB reached its conclusions, and includes discussion of significant matters arising from comments received and issues raised in response to its proposals exposed.

Section PS 3280 applies to asset retirement obligations associated with tangible capital assets controlled by the public sector entity that are in productive use and no longer in productive use. Only legal obligations, including obligations created by promissory estoppel, are in scope of this standard.

The new Sec­tion applies to fis­cal years be­gin­ning on or af­ter April 1, 2021. Ear­lier adop­tion is per­mit­ted.

Review the Basis for Conclusions on the PSAB's website.

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