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On the Radar

Environmental Obligations and Asset Retirement Obligations

October 2021
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On the Radar
Environmental Obligations and Asset Retirement Obligations

Environmental obligations can arise from the improper operation, retirement, or closing, or from the current or former ownership, of a facility at or near a contaminated site. Entities that have incurred a legal obligation to remove or remediate pollution or contaminants from environmental media such as soil, sediment, groundwater, and surface water are required to recognize an environmental remediation liability in their financial statements.