A modern experience with real-time updates, predictive search functionality, PwC curated content pages and user-friendly sharing features, Viewpoint helps you find the insights and content you need when you need it. Explanation. It outlines the financial statements required and discusses the measurement of various line items, particularly the actuarial present value of promised retirement benefits for defined benefit plans. The accounting for these obligations is covered under FASB ASC 410, or Accounting Standards Codification Statement No. A legal obligation refers to an obligation from a contract (explicit or implicit terms), legislation or other law. An asset retirement obligation (ARO) initially should be measured at fair value and should be recognized at the time the obligation is incurred (provided that a reasonable estimate of fair value can be made). PwC guide library Other titles in the PwC accounting and financial reporting guide series: Bankruptcies and liquidations (2014) Business combinations and noncontrolling interests, global edition (2014) Consolidations (planned issuance 2015) Derivative instruments and hedging activi ties (2013), Second edition (planned update 2015) Fair value measurements, global edition … Viewpoint has replaced Inform - click here to visit our new platform As always, the people of PricewaterhouseCoopers are available to assist you with any questions … An asset retirement obligation (ARO) is a liability associated with the eventual retirement of a fixed asset. They call it “asset retirement obligation (ARO)”. Asset retirement obligations; Assuring your compliance to the new mine closure provisioning regulations; Update on the status of Regulation 1147; View our new page: Sustainable Development Goals. For example, an offshore oil-and-gas-production facility An ARO example. Tags In. The above recognition criteria should be applied using guidance provided in ASC 450 for the application of the similar criteria in ASC 450-20-25-2. The amount of asset or liability can be reasonably estimated. It has been updated as of June 2018. In paragraph 3 of FIN 47, a “conditional asset retirement obligation” (CARO) is defined as: “A legal obligation to perform an asset retirement activity in which the timing and/or method of settlement are conditional on a future event that may or may not be within the control of the entity. Summary of ASPE 3110 – Asset Retirement Obligations Definitions . Asset retirement obligation (ARO) – is a legal obligation associated with the retirement of a tangible longlived asset - that an entity is required to settle as a result of an existing or exacted law, statute, ordinance or written or oral contract or by legal construction of a contract under the doctrine of . 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