Fair value is the price that would be paid to transfer the liability in an orderly transaction between market participants at the measurement date. © 2021. Because the accounting for environmental obligations and AROs will vary depending on the laws and regulations governing such obligations, this publication provides an overview of some of the applicable federal and state environmental laws and regulations in the United States and describes the application of the accounting guidance within the relevant legal framework. Because the guidance in ASC 410-30 addresses (albeit not exclusively) the application of federal and state environmental laws and regulations in the United States, this Roadmap provides an overview of some of those laws and regulations and describes the application of ASC 410-30 within the relevant legal framework. This publication is designed to assist professionals in understanding the accounting for asset retirement obligations. A podcast by our professionals who share a sneak peek at life inside Deloitte. Because the accounting for environmental obligations and AROs will vary depending on the laws and regulations … Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ("DTTL"), its network of member firms, and their related entities. ... EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Asset retirement obligations Other financial liabilities Equity shall be presented in accordance with the requirements of Section 3251, Equity. (a) An asset retirement obligation represents a liability for the legal obligation associated with the retirement of a tangible, long-lived asset that a service company is required to settle as a result of an existing or enacted law, statute, ordinance, or written or oral contract, or by legal construction of a contract under the doctrine of promissory estoppel. Discover Deloitte and learn more about our people and culture. This Roadmap provides Deloitte’s insights into and interpretations of the accounting guidance on environmental obligations in ASC 410-30 and asset retirement obligations (AROs) in ASC 410-20. Alex Debbink. Archives are available on the Deloitte Accounting Research Tool website. %PDF-1.4 %���� Telecommunications, Media & Entertainment, Stay current: Audit & Assurance subscriptions, Financial Statement & Internal Control Audit. An asset retirement obligation is a type of legal obligation that applies to businesses that have long-lived assets that will someday be retired. This publication reflects our current understanding of this guidance based on our … Asset Retirement Obligations Revised June 2011 (EY) - Free download as PDF File (.pdf), Text File (.txt) or read online for free. We are pleased to present the 2020 edition of A Roadmap to Accounting for Environmental Obligations and Asset Retirement Obligations. Asset retirement obligations are legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development and/or the normal operation of such assets. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the "Deloitte" name in the United States and their respective affiliates. 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