Asset Retirement Obligations (Portfolio 5143)

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Asset Retirement Obligations discusses the calculation, presentation, and disclosure of asset retirement obligations under FAS 143 and IAS 37. This Portfolio compares and contrasts the differences between U.S. GAAP and IFRS in accounting for these items and provides in-depth, practical examples.

This Portfolio details the requirements of FAS 143, focusing on definitions within the standard as well as initial and subsequent recognition and measurement of asset retirement obligations. The explanation includes a discussion of fair value measurements and the recognition of conditional asset retirement obligations. Explanation of the major provisions is followed by a discussion of asset impairments, effects of funding and assurance provisions, information for rate-regulated entities, required disclosures, and transition provisions.

This Portfolio also discusses other issues related to asset retirement obligations, including IFRS and ongoing FASB projects, environmental remediation liabilities, and SEC issues. An explanation of how to apply FAS 157, Fair Value Measurements, in accounting for asset retirement obligations under FAS 143 follows.