FASB Interprets Accounting for Conditional Asset Retirement Obligations
- Topics:
- Financial Statements,
- Retirement
- Tags:
- Accounting,
- Asset,
- Asset Management,
- Business Operations,
- Finance,
- Financial Accounting,
- Financial Accounting Standards Board,
- Obligation,
- Operational Planning
- Source:
- Deloitte LLP
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Overview: Under FASB Statement 143, a company must record a liability for its legal obligations stemming from the eventual retirement of its tangible long-lived assets, whether that obligation results from the acquisition, construction, or development of the asset. However, many companies have not recorded a liability, concluding that either the conditional nature of the obligation does not create a liability until the retirement activity occurs or the timing and/or the method of settling the obligation is unknown.
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Format: PDF | Size: 211KB | Date: Apr 2005 | Pages: 4
