Required subscriptions
- US GAAP
The accounting for environmental obligations and asset retirement
obligations (AROs) will vary depending on the laws and regulations governing such
obligations. This Roadmap is intended to help entities address the impact of certain
environmental and asset retirement laws and regulations on accounting for
environmental obligations and AROs.
Environmental obligations are generally accounted for under ASC
410-30, whose recognition and disclosure guidance is principally based on the
framework outlined by the guidance on loss contingencies in ASC 450-20. Because the
guidance in ASC 410-30 addresses 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.
AROs typically arise as a result of federal or state laws,
contractual agreements, 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.
The 2022 edition of this Roadmap includes updates on regulatory
developments as well as On the Radar, a section that briefly summarizes emerging
issues and trends related to the accounting and financial reporting topics addressed
in the Roadmap. On the
Radar is also available as a stand-alone publication.