Case Study for Accounting 362

Case Study for Accounting 362 - 1 The authority on asset...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1) The authority on asset retirement obligations is located on the FASB website, under the 410-20 section of the ASC. I am able to find the recognition, measurement, implementation guidelines regarding asset retirement obligations. Asset retirement obligations have to be recognized in the period it’s incurred at their fair value. For long lived asset’s it may be difficult to measure the fair value, but it should be recognized as soon as a reasonable measurement can be taken. According to the 410-20-25-5, once ARO’s are recognized, they increase the carrying value of its associated long-lived asset. These asset retirement costs are then expensed over the useful life of the event. All entities are obligated to recognize their ARO’s, and have sufficient information when, a. It is evident that the fair value of the obligation is embodied in the acquisition price of the asset b. An active market exists for the transfer of the obligation c.
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern