Common Journal Entries for Asset Retirement Obligations

Introduction

A. Definition and Importance of Asset Retirement Obligations (AROs)

Brief Explanation of What AROs Are

In this article, we’ll cover common journal entries for asset retirement obligations. Asset Retirement Obligations (AROs) are legal obligations associated with the retirement of tangible long-lived assets. These obligations arise when an entity is required to perform certain activities, such as dismantling, removing, or restoring an asset site, at the end of the asset’s useful life. The requirement to retire the asset may be imposed by law, contract, or a binding agreement.

For example, an oil company may need to decommission an offshore drilling platform and restore the ocean floor to its original state, or a mining company may have to fill in and landscape a quarry once extraction operations have ceased. These future retirement costs are estimated and recorded as liabilities on the balance sheet.

Importance of Proper Accounting for AROs

Proper accounting for AROs is crucial for several reasons:

1. Financial Accuracy: Ensures that the financial statements accurately reflect the company’s liabilities, providing a true picture of its financial health.
2. Compliance: Helps maintain compliance with accounting standards and regulations, avoiding potential legal and financial penalties.
3. Investor Confidence: Enhances transparency and investor confidence by showing that the company is prepared for future financial obligations.
4. Cost Management: Assists in effective cost management and financial planning, allowing companies to allocate resources efficiently for future asset retirement activities.

B. Overview of Relevant Accounting Standards

Introduction to Relevant Accounting Standards (e.g., ASC 410)

The primary accounting standard governing Asset Retirement Obligations in the United States is ASC 410, Asset Retirement and Environmental Obligations, issued by the Financial Accounting Standards Board (FASB). This standard outlines the recognition, measurement, and disclosure requirements for AROs.

Key Provisions of ASC 410:

• Initial Recognition: ASC 410 requires entities to recognize a liability for the fair value of an ARO in the period in which it is incurred if a reasonable estimate of fair value can be made. The corresponding cost is capitalized as part of the carrying amount of the related long-lived asset.
• Subsequent Measurement: The ARO liability is adjusted periodically for accretion expense (similar to interest expense) to reflect the passage of time and changes in the estimated cash flows required to settle the obligation.
• Disclosure Requirements: ASC 410 mandates specific disclosures in the financial statements, including a description of the nature of the ARO, the fair value of the obligations, and any changes in the carrying amount of the ARO.

By adhering to ASC 410, companies ensure that they recognize and measure their AROs accurately, providing stakeholders with reliable financial information and maintaining regulatory compliance.

Initial Recognition of Asset Retirement Obligations

A. Identification of Obligations

Explanation of How AROs Are Identified and Measured

Identifying an Asset Retirement Obligation (ARO) begins with determining whether a legal obligation exists to retire a tangible long-lived asset. This obligation may stem from laws, regulations, contracts, or binding agreements. Once an obligation is identified, the next step is to estimate the costs required to fulfill this obligation, which can include dismantling, removal, and site restoration.

Measurement of AROs involves:

1. Estimating Future Retirement Costs: Identifying all the activities necessary to retire the asset and their associated costs.
2. Determining the Timing of Retirement Activities: Estimating when these activities will occur, usually at the end of the asset’s useful life.
3. Discounting Future Costs to Present Value: Using a credit-adjusted risk-free rate to discount the future costs to their present value at the time the obligation is incurred.

B. Initial Measurement

Calculation of the Present Value of Future Retirement Costs

To calculate the present value of future retirement costs, the following steps are taken:

1. Estimate the Total Future Cash Outflows: Sum all costs expected to be incurred in retiring the asset.
2. Select an Appropriate Discount Rate: A credit-adjusted risk-free rate is typically used. This rate should reflect the time value of money and the risks specific to the liability.
3. Calculate the Present Value: Apply the discount rate to the estimated future cash flows to determine their present value. The formula for present value (PV) is:
   \(\text{PV} = \frac{FV}{(1 + r)^n} \)
   Where:

• ( PV ) is the present value of the future retirement cost.
• ( FV ) is the future value or the estimated cost to retire the asset.
• ( r ) is the discount rate.
• ( n ) is the number of periods until the retirement activities are expected to occur.

C. Journal Entry for Initial Recognition

Debit Asset Retirement Cost (ARC) (Capitalized as Part of the Related Asset)

The initial recognition of an ARO involves recording the present value of the estimated future retirement costs as both a liability and an asset. The asset side of the entry, known as the Asset Retirement Cost (ARC), is capitalized as part of the carrying amount of the related long-lived asset. This inclusion in the asset’s cost basis ensures that the expense is matched with the revenue generated by the asset over its useful life.

Credit Asset Retirement Obligation (Liability)

Simultaneously, a liability is recognized for the Asset Retirement Obligation. This liability reflects the company’s obligation to perform the future retirement activities and is reported on the balance sheet.

The journal entry for the initial recognition of an ARO is as follows:

\(\text{Debit: Asset Retirement Cost (ARC)} \quad \text{[Present Value of Estimated Retirement Costs]} \)
\(\text{Credit: Asset Retirement Obligation (ARO)} \quad \text{[Present Value of Estimated Retirement Costs]} \)

For example, if the present value of the future retirement costs is estimated to be $50,000, the journal entry would be:

\(\text{Debit: Asset Retirement Cost (ARC)} \quad \$50,000 \)
\(\text{Credit: Asset Retirement Obligation (ARO)} \quad \$50,000 \)

This initial recognition ensures that both the cost of the asset and the future obligation are accurately reflected in the financial statements.

Subsequent Measurement of Asset Retirement Obligations

A. Accretion Expense

Explanation of the Accretion Expense Concept

Accretion expense is the periodic increase in the carrying amount of the Asset Retirement Obligation (ARO) liability due to the passage of time. This expense arises because the present value of the ARO liability, initially recognized at the inception of the obligation, must be increased over time to reach the future estimated retirement cost.

Accretion expense is similar to interest expense in that it reflects the cost of capital over time. As each period passes, the liability grows to reflect the approaching settlement date when the actual retirement activities will occur. The accretion expense is calculated by applying the initial discount rate used to determine the present value of the ARO to the carrying amount of the ARO at the beginning of the period.

For example, if the initial present value of an ARO was $50,000 and the discount rate was 5%, the accretion expense for the first year would be:

Accretion Expense = Carrying Amount of ARO x Discount Rate = $50,000 x 0.05 = $2,500

As a result, the ARO liability increases by $2,500 in the first year, reflecting the accretion expense for that period.

B. Journal Entry for Accretion Expense

To account for the accretion expense, a journal entry is made at the end of each reporting period. This entry recognizes the increase in the ARO liability and the corresponding expense in the income statement.

The journal entry for recording accretion expense is:

\(\text{Debit: Accretion Expense} \quad \text{[Amount of Accretion Expense]} \)
\(\text{Credit: Asset Retirement Obligation (ARO)} \quad \text{[Amount of Accretion Expense]} \)

Using the previous example, the journal entry for the first year’s accretion expense of $2,500 would be:

\(\text{Debit: Accretion Expense} \quad \$2,500 \)
\(\text{Credit: Asset Retirement Obligation (ARO)} \quad \$2,500 \)

This entry increases the ARO liability on the balance sheet and recognizes the accretion expense on the income statement. Over time, as the asset retirement date approaches, these periodic accretion expenses accumulate, ensuring that the ARO liability accurately reflects the future retirement costs by the time the asset is retired.

Revisions to ARO Estimates

A. Changes in Estimated Costs

Situations Leading to Changes in Estimated Costs

The estimated costs associated with Asset Retirement Obligations (AROs) can change over time due to various factors. These changes necessitate revisions to the initial estimates to ensure that the financial statements accurately reflect the current cost expectations. Common situations leading to changes in estimated costs include:

1. Technological Advances: Improvements in technology can reduce the costs associated with asset retirement activities.
2. Regulatory Changes: New laws or regulations may alter the requirements for asset retirement, impacting the associated costs.
3. Market Conditions: Fluctuations in market prices for labor, materials, and other resources needed for asset retirement can lead to cost revisions.
4. Operational Changes: Changes in the asset’s use, condition, or lifespan can affect the timing and extent of retirement activities.
5. Environmental Considerations: New environmental assessments or changes in environmental conditions can lead to revised cost estimates.

When such changes occur, the ARO liability must be adjusted to reflect the updated cost estimates, ensuring that the financial statements remain accurate and compliant with accounting standards.

B. Journal Entries for Revisions

Increase in ARO

When there is an increase in the estimated costs of retiring an asset, the ARO liability must be increased. This adjustment involves debiting the Asset Retirement Cost (ARC) account and crediting the Asset Retirement Obligation (ARO) account. The additional ARC is capitalized and depreciated over the remaining useful life of the asset.

Journal Entry for Increase in ARO:

\(\text{Debit: Asset Retirement Cost (ARC)} \quad \text{[Increase in Estimated Costs]} \)
\(\text{Credit: Asset Retirement Obligation (ARO)} \quad \text{[Increase in Estimated Costs]} \)

For example, if the revised estimate increases the retirement costs by $10,000, the journal entry would be:

\(\text{Debit: Asset Retirement Cost (ARC)} \quad \$10,000 \)
\(\text{Credit: Asset Retirement Obligation (ARO)} \quad \$10,000 \)

Decrease in ARO

When there is a decrease in the estimated costs of retiring an asset, the ARO liability must be decreased. This adjustment involves debiting the Asset Retirement Obligation (ARO) account. The corresponding credit depends on whether the ARC can be adjusted or if the decrease results in a gain.

Journal Entry for Decrease in ARO:

1. If the ARC Can Be Adjusted:

\(\text{Debit: Asset Retirement Obligation (ARO)} \quad \text{[Decrease in Estimated Costs]} \)
\(\text{Credit: Asset Retirement Cost (ARC)} \quad \text{[Decrease in Estimated Costs]} \)

2. If the ARC Cannot Be Adjusted (resulting in a gain):

\(\text{Debit: Asset Retirement Obligation (ARO)} \quad \text{[Decrease in Estimated Costs]} \)
\(\text{Credit: Gain on ARO Revisions} \quad \text{[Decrease in Estimated Costs]} \)

For example, if the revised estimate decreases the retirement costs by $5,000 and the ARC can be adjusted, the journal entry would be:

\(\text{Debit: Asset Retirement Obligation (ARO)} \quad \$5,000 \)
\(\text{Credit: Asset Retirement Cost (ARC)} \quad \$5,000 \)

If the ARC cannot be adjusted and the decrease results in a gain, the journal entry would be:

\(\text{Debit: Asset Retirement Obligation (ARO)} \quad \$5,000 \)
\(\text{Credit: Gain on ARO Revisions} \quad \$5,000 \)

These adjustments ensure that the ARO liability and related costs are accurately reflected in the financial statements, maintaining compliance with accounting standards and providing a true picture of the company’s financial obligations.

Settlement of Asset Retirement Obligations

A. Actual Retirement of the Asset

Process of Settling the ARO

The settlement of an Asset Retirement Obligation (ARO) occurs when the asset is actually retired, and the retirement activities, such as dismantling, removal, and site restoration, are performed. The process of settling an ARO involves the following steps:

1. Execution of Retirement Activities: Carrying out the activities required to retire the asset as per the legal or contractual obligations.
2. Incurment of Costs: Paying for the costs associated with the retirement activities, which may include labor, materials, transportation, and any other necessary expenses.
3. Final Cost Assessment: Comparing the actual costs incurred to the initially estimated and recorded ARO liability.

During this process, the entity needs to ensure that all activities comply with legal, environmental, and safety regulations. Any deviations from the estimated costs should be carefully evaluated to determine if a gain or loss needs to be recognized upon settlement.

B. Journal Entry for Settlement

Once the retirement activities are completed and the actual costs are known, the ARO liability is settled. The journal entry for settlement involves removing the ARO liability from the balance sheet and recognizing the payment made to settle the obligation. Additionally, any difference between the estimated ARO liability and the actual settlement costs results in a gain or loss.

Journal Entry for Settlement:

1. If Actual Costs Equal Estimated Liability:

\(\text{Debit: Asset Retirement Obligation (ARO)} \quad \text{[Recorded ARO Amount]} \)
\(\text{Credit: Cash/Accounts Payable} \quad \text{[Actual Costs Incurred]} \)

2. If Actual Costs Are Less Than Estimated Liability (resulting in a gain):

\(\text{Debit: Asset Retirement Obligation (ARO)} \quad \text{[Recorded ARO Amount]} \)
\(\text{Credit: Cash/Accounts Payable} \quad \text{[Actual Costs Incurred]} \)
\(\text{Credit: Gain on Settlement of ARO} \quad \text{[Difference]} \)

3. If Actual Costs Are More Than Estimated Liability (resulting in a loss):

\(\text{Debit: Asset Retirement Obligation (ARO)} \quad \text{[Recorded ARO Amount]} \)
\(\text{Debit: Loss on Settlement of ARO} \quad \text{[Difference]} \)
\(\text{Credit: Cash/Accounts Payable} \quad \text{[Actual Costs Incurred]} \)

For example, if the recorded ARO liability is $50,000 and the actual costs incurred are $50,000, the journal entry would be:

\(\text{Debit: Asset Retirement Obligation (ARO)} \quad \$50,000 \)
\(\text{Credit: Cash/Accounts Payable} \quad \$50,000 \)

If the actual costs incurred are $45,000, resulting in a gain of $5,000, the journal entry would be:

\(\text{Debit: Asset Retirement Obligation (ARO)} \quad \$50,000 \)
\(\text{Credit: Cash/Accounts Payable} \quad \$45,000 \)
\(\text{Credit: Gain on Settlement of ARO} \quad \$5,000 \)

If the actual costs incurred are $55,000, resulting in a loss of $5,000, the journal entry would be:

\(\text{Debit: Asset Retirement Obligation (ARO)} \quad \$50,000 \)
\(\text{Debit: Loss on Settlement of ARO} \quad \$5,000 \)
\(\text{Credit: Cash/Accounts Payable} \quad \$55,000 \)

These entries ensure that the ARO is properly settled and any financial impact of the difference between estimated and actual costs is recognized in the financial statements, providing an accurate reflection of the company’s financial position.

Comprehensive Example

A. Scenario Description

Detailed Description of a Hypothetical Scenario Involving an ARO

Let’s consider a hypothetical scenario where a mining company, Green Earth Mining Inc., operates a coal mine. The company is legally obligated to restore the land to its original state after the mining operations cease. The estimated cost to restore the site is $100,000, and the expected life of the mine is 10 years. The discount rate used to calculate the present value of the ARO is 5%.

B. Step-by-Step Journal Entries

Initial Recognition

At the beginning of the mining operation, Green Earth Mining Inc. recognizes the ARO by calculating the present value of the future retirement costs.

Present Value Calculation:
\(PV = \frac{FV}{(1 + r)^n} = \frac{100,000}{(1 + 0.05)^{10}} \approx \$61,391 \)

Journal Entry for Initial Recognition:
\(\text{Debit: Asset Retirement Cost (ARC)} \quad \$61,391 \)
\(\text{Credit: Asset Retirement Obligation (ARO)} \quad \$61,391 \)

Subsequent Measurement

Each year, Green Earth Mining Inc. recognizes accretion expense to increase the ARO liability.

Year 1 Accretion Expense Calculation:
Accretion Expense = Carrying Amount of ARO x Discount Rate = $61,391 x 0.05 = $3,070

Journal Entry for Year 1 Accretion Expense:
\(\text{Debit: Accretion Expense} \quad \$3,070 \)
\(\text{Credit: Asset Retirement Obligation (ARO)} \quad \$3,070 \)

This entry is repeated annually, with the carrying amount of the ARO increasing each year.

Revisions to ARO Estimates

In Year 5, the company revises its cost estimate for the restoration to $120,000 due to new environmental regulations.

Revised Present Value Calculation:
\(\text{Remaining PV} = \frac{120,000}{(1 + 0.05)^5} \approx \$94,040 \)

Carrying Amount Before Revision:
Initial ARO + 5 years of Accretion Expense = $61,391 + (5 x $3,070) = $76,741

Increase in ARO:
New PV – Carrying Amount = $94,040 – $76,741 = $17,299

Journal Entry for Increase in ARO:
\(\text{Debit: Asset Retirement Cost (ARC)} \quad \$17,299 \)
\(\text{Credit: Asset Retirement Obligation (ARO)} \quad \$17,299 \)

Settlement of ARO

At the end of Year 10, Green Earth Mining Inc. incurs actual retirement costs of $125,000.

Journal Entry for Settlement:
\(\text{Debit: Asset Retirement Obligation (ARO)} \quad \$120,000 \)
\(\text{Debit: Loss on Settlement of ARO} \quad \$5,000 \)
\(\text{Credit: Cash/Accounts Payable} \quad \$125,000 \)

C. Summary of Financial Statement Impact

Analysis of How Each Entry Affects the Financial Statements

• Initial Recognition:
  • Increases the asset base (Asset Retirement Cost) and the liability (Asset Retirement Obligation).
  • Results in higher depreciation expense over the asset’s useful life due to the increased asset base.
• Subsequent Measurement:
  • Accretion expense increases the carrying amount of the ARO liability annually.
  • Accretion expense is recognized in the income statement, reducing net income.
• Revisions to ARO Estimates:
  • An increase in estimated costs leads to a higher Asset Retirement Cost and ARO liability.
  • The revised Asset Retirement Cost is depreciated over the remaining useful life, increasing annual depreciation expense.
• Settlement:
  • Removes the ARO liability from the balance sheet.
  • Recognizes actual costs incurred, impacting cash or accounts payable.
    • Any difference between the estimated and actual costs results in a gain or loss, affecting the income statement.

Through these entries, the financial statements reflect the company’s obligations and the costs associated with retiring long-lived assets accurately, ensuring compliance with accounting standards and providing stakeholders with transparent financial information.

Disclosure Requirements

A. Disclosure in Financial Statements

Required Disclosures for AROs in Financial Statements

To ensure transparency and provide stakeholders with a comprehensive understanding of an entity’s obligations, specific disclosures regarding Asset Retirement Obligations (AROs) are required in financial statements. These disclosures typically include:

1. Description of the ARO:

• Nature of the obligation and the assets involved.
• Legal or contractual requirements prompting the obligation.

2. Fair Value of the Liability:

• The carrying amount of the ARO liability.
• Changes in the liability, including new obligations incurred, adjustments due to changes in estimated costs, accretion expense, and settlements.

3. Timing and Method of Settlement:

• Expected timing of the asset retirement activities.
• Methods and assumptions used to estimate the fair value of the ARO.

4. Revisions to Estimates:

• Details of any revisions to the estimated costs or the timing of the retirement activities, including the reasons for these changes.

5. Reconciliation of the Beginning and Ending ARO Balances:

• Opening balance of the ARO.
• Additions or reductions to the liability due to new obligations, changes in estimates, and settlements.
• Accretion expense recognized during the period.
• Closing balance of the ARO.

These disclosures help stakeholders understand the nature and magnitude of the obligations, the methods used to estimate the costs, and the impact of any changes to the estimates.

B. Examples of Disclosure

Sample Disclosure Notes

Here are some sample disclosure notes that illustrate how an entity might present information about its AROs in the financial statements:

Note 1: Description of the ARO

Asset Retirement Obligations (AROs) Green Earth Mining Inc. has recognized an Asset Retirement Obligation (ARO) associated with the restoration of its coal mine site. The company is legally required to restore the land to its original state after the cessation of mining operations, as stipulated by environmental regulations and contractual agreements.

Note 2: Fair Value of the Liability

The fair value of the ARO liability as of December 31, 2023, is $94,040. This value represents the present value of the estimated future costs required to retire the asset, discounted at a credit-adjusted risk-free rate of 5%.

Note 3: Timing and Method of Settlement

The expected timing for the retirement activities is at the end of the asset’s useful life, approximately 10 years from the initial recognition date. The cost estimates are based on current market prices for labor, materials, and other related expenses, considering the specific requirements of the environmental restoration plan.

Note 4: Revisions to Estimates

During the year ended December 31, 2023, Green Earth Mining Inc. revised its estimated restoration costs from $100,000 to $120,000 due to new environmental regulations. This revision resulted in an increase in the ARO liability and the corresponding Asset Retirement Cost (ARC) by $17,299.

Note 5: Reconciliation of ARO Balances

Reconciliation of Asset Retirement Obligation Liability: Opening balance as of January 1, 2023: $76,741 – Accretion expense for the year: $3,070 – Revisions due to changes in estimated costs: $17,299 – Settlement of ARO liability: $0 Closing balance as of December 31, 2023: $94,040

These sample notes provide a clear and comprehensive view of the ARO, including the nature of the obligation, the methodology for estimating costs, and any changes to the liability. They ensure that stakeholders are well-informed about the company’s future obligations and the financial implications of these commitments.

Conclusion

A. Summary of Key Points

Recap of the Main Points Covered in the Article

In this article, we delved into the essential aspects of accounting for Asset Retirement Obligations (AROs). The main points covered include:

1. Introduction to AROs:

• Definition and importance of AROs.
• Overview of relevant accounting standards, particularly ASC 410.

2. Initial Recognition of AROs:

• Identification of obligations and the process of measuring them.
• Calculation of the present value of future retirement costs.
• Journal entries for initial recognition, including debiting Asset Retirement Cost (ARC) and crediting Asset Retirement Obligation (ARO).

3. Subsequent Measurement of AROs:

• Explanation of accretion expense and its significance.
• Journal entries for accretion expense to reflect the increasing liability over time.

4. Revisions to ARO Estimates:

• Situations leading to changes in estimated costs.
• Journal entries for increases and decreases in AROs, including the impact on ARC and potential gains or losses.

5. Settlement of AROs:

• Process of settling the ARO upon actual retirement of the asset.
• Journal entries for settlement, addressing the removal of the liability and recognition of any gain or loss.

6. Comprehensive Example:

• A detailed scenario involving a hypothetical ARO.
• Step-by-step journal entries for initial recognition, subsequent measurements, revisions, and settlement.
• Summary of the financial statement impact of each entry.

7. Disclosure Requirements:

• Required disclosures for AROs in financial statements.
• Sample disclosure notes illustrating how to present ARO-related information.

B. Importance of Accurate ARO Accounting

Final Thoughts on the Importance of Accurate and Compliant ARO Accounting

Accurate and compliant accounting for Asset Retirement Obligations is critical for several reasons:

1. Financial Accuracy and Transparency:

• Ensures that the financial statements accurately reflect the company’s liabilities and obligations, providing a true picture of its financial health.
• Enhances transparency, allowing stakeholders to understand the nature and magnitude of the company’s future obligations.

2. Regulatory Compliance:

• Helps maintain compliance with accounting standards such as ASC 410, avoiding potential legal and financial penalties.
• Ensures that the company meets the disclosure requirements, providing detailed and relevant information to regulators and stakeholders.

3. Investor Confidence:

• Builds investor confidence by demonstrating that the company is prepared for future retirement costs and has a clear plan for managing these obligations.
• Shows a commitment to environmental and regulatory responsibilities, which can positively impact the company’s reputation and market value.

4. Effective Financial Planning and Cost Management:

• Assists in effective financial planning and resource allocation, ensuring that sufficient funds are set aside to meet future retirement obligations.
• Helps in managing and controlling costs related to asset retirement activities, optimizing the company’s financial performance.

In conclusion, proper accounting for AROs is not just a regulatory requirement but a crucial aspect of responsible financial management. By accurately recognizing, measuring, and disclosing these obligations, companies can enhance their financial reporting, build trust with stakeholders, and ensure long-term sustainability.

References

A. List of Relevant Accounting Standards and Literature

References to ASC 410 and Other Relevant Guidelines

1. ASC 410 – Asset Retirement and Environmental Obligations:

• Financial Accounting Standards Board (FASB). ASC 410

2. Accounting Standards Codification (ASC):

• FASB. Comprehensive source for GAAP guidelines. FASB ASC

3. International Financial Reporting Standards (IFRS) – IAS 37:

• International Accounting Standards Board (IASB). Relevant for companies reporting under IFRS. IAS 37

4. Securities and Exchange Commission (SEC) Guidelines:

• Provides additional guidance for public companies in the US. SEC Accounting and Auditing Enforcement Releases

B. Additional Resources

Books, Articles, and Other Resources for Further Reading

1. Books:

• “Intermediate Accounting” by Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield:
  • A comprehensive textbook that covers various accounting topics, including AROs. Link to Book
• “Accounting for Environmental Obligations: A Field Manual” by Richard Macve:
  • Detailed guidance on accounting for environmental obligations, including AROs. Link to Book

2. Articles:

• “Accounting for Asset Retirement Obligations under U.S. GAAP”:
  • An article providing an overview and practical examples of ARO accounting. Link to Article
• “Understanding Asset Retirement Obligations” by Deloitte:
  • A detailed white paper explaining AROs and their financial implications. Link to White Paper

3. Online Resources:

• FASB’s Website:
  • The official site for the Financial Accounting Standards Board, offering access to ASC and other resources. FASB Website
• IFRS Foundation’s Website:
  • The official site for the International Financial Reporting Standards Foundation, providing access to IFRS standards and resources. IFRS Foundation Website

These references and resources offer a solid foundation for understanding and applying the principles of Asset Retirement Obligations in financial accounting. They provide both theoretical knowledge and practical guidance, making them invaluable for accounting professionals and students alike.