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Section 3110 - Asset retirement obligations

Effective date:

January 1, 2011

Published by the AcSB:

December 2009

Overview

This Section establishes standards for the recognition, measurement and disclosure of liabilities for asset retirement obligations and the associated asset retirement costs. An asset retirement obligation is a legal obligation associated with the permanent removal of a long-lived asset from service. The obligation is recognized at the best estimate of the amount required to settle the obligation at the balance sheet date. Upon initial recognition of a liability as an asset retirement obligation, an entity increases the carrying amount of the related long-lived asset by the same amount. In subsequent periods, the asset retirement obligation is adjusted for interest accretion and revisions to the estimated cash flows or the discount rate to arrive at the current best estimate of the obligation.

History of Section 3110

Date

Development

Comments

December 2009

Part II of the CPA Canada Handbook issued

Effective for fiscal years beginning on or after January 1, 2011.

This Section incorporates a simplified method of measuring the amount of an asset retirement obligation.

Note: The above summary does not include details of consequential amendments made as the result of other projects.

Private Enterprise Advisory Committee Meeting Notes

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.