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.
- Program Integrity Rulemaking to Be Delayed
- Associations Respond to McCaskill Sexual Assault Legislation
- COFAR Releases Frequently Asked Questions on OMB's Super Circular
- 2014 Tax Forum
September 28-September 30, 2014
- 2014 Global Operations Forum
September 30-October 1, 2014
- 2014 Intermediate Accounting and Reporting - Fall
October 13-14, 2014
- ON-DEMAND: Strategic Tuition Assessment and Tuition Restructuring
- ON-DEMAND: Are Shared Services Right for Your Organization – The KU Journey
- ON-DEMAND: VIRTUAL: 2014 Annual Meeting
- ON-DEMAND: FASB's Proposed NFP Reporting Changes
- ON-DEMAND: VIRTUAL: Student Financial Services Conference
- ON-DEMAND: VIRTUAL: Higher Education Accounting Forum
- ON-DEMAND: VIRTUAL: Global Operations Support and Compliance Forum
- A Guide to College and University Budgeting: Foundations for Institutional Effectiveness, 4th ed. - by Larry Goldstein
- NACUBO's Guide to Unitizing Investment Pools - by Mary S. Wheeler
- Managing and Collecting Student Accounts and Loans - by David R. Glezerman and Dennis DeSantis