This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

A Roadmap to Accounting for Environmental Obligations and Asset Retirement Obligations (2018)

Published on: Jun 28, 2018

The guidance on accounting for environmental obligations and asset retirement obligations (AROs) is unique because of its dependency on the various laws and regulations governing such obligations. Given that dependency, we have created this Roadmap to illustrate and help you navigate the intersection of law and accounting related to environmental obligations and AROs.

The accounting guidance on loss contingencies in ASC 450-201 provides the framework for the accounting for environmental obligations under ASC 410-30. The accounting requirements for environmental obligations under ASC 410-30 are generally based on federal and state environmental laws in the United States. Accordingly, this Roadmap provides an overview of some of the applicable state and federal environmental laws in the United States and describes the application of the accounting guidance within this legal framework.

Unlike environmental obligations, AROs typically arise as a result of state laws and asset-specific operating permits. This Roadmap describes the accounting requirements for AROs in ASC 410-20 and includes a discussion of certain relevant industry considerations within the context of the laws and regulations governing AROs for various industries.

Download

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.