FASB Clarifies Conditional Asset Retirement Obligation
April 21, 2005
The Financial Accounting Standards Board published Interpretation No. 47, “Accounting for Conditional Asset Retirement Obligations,” on March 31. The interpretation clarifies the term conditional asset obligation used in FASB Statement No. 143, “Accounting for Asset Retirement Obligations.” According to the interpretation, a conditional asset retirement obligation refers to a legal obligation to perform the asset retirement activity.
In general, FASB believes that when an obligation meets the definition of a liability, it should be recognized. The Board believes that questions about uncertainty in the timing and method of payment are measurement issues that usually can be addressed by using a fair value measure. The interpretation represents a relatively recent change in thought from FASB’s earlier statements—most notably FASB Statement No. 5, "Accounting for Contingencies," which required an entity to consider uncertainty in its determination of whether to recognize a liability.
The interpretation is effective no later than the end of fiscal years ending after December 15, 2005 (December 31, 2005, for calendar-year organizations).
For information, please contact Sue Menditto.
- Federal Court Postpones Effective Date of Overtime Rule
- 1098-T Box 1 Reporting Will Not be Required Until 2018 Tax Year
- EPA Issues Hazardous Waste Generator Improvements Rule
- 2017 Intermediate Accounting and Reporting - Winter
January 23-24, 2017
- 2017 Endowment and Debt Management Forum
February 1-3, 2017
- ON-DEMAND: The CBO's Role in Diversity and Inclusion on Campus
- ON-DEMAND: The Clery Act: Strategic Planning to Mitigate Institutional Risk
- ON-DEMAND: Title IX: Key Issues Surrounding Institutional Compliance
- ON-DEMAND: NACUBO Live! Higher Education Accounting Forum
- ON-DEMAND: Responsibility Center Management: Two Different Perspectives