NAA2613. Asset Retirement Obligations

Asset Retirement Obligations (AROs) accounting guidance was originally issued in response to power plant decommissioning, but the guidance has implication well beyond power plants. Today, many lease contracts and statutory guidelines establish asset retirement obligations, which, if not identified, may go unrecognized in the financial statements, causing inaccurate financial reporting, regulatory compliance issues, and lack of confidence in the financial statements. This session will discuss the existence and need of AROs and related disclosures, including complexities, settlements, and auditing challenges.

Learning Objectives:

• Identify when an Asset Retirement Obligation (ARO) exists.
• Determine the initial accounting for recognition of an ARO and related disclosures.
• Distinguish the complexities in subsequent recognition and measurement of an ARO and related disclosures.
• Determine the settlement of AROs and related disclosures.