1185 0 obj <> endobj ���V��,���j���oD#/@� x�f� 1220 0 obj <>stream Asset Retirement Obligations. Register Now. • ASPE 3110 very similar to PS 3280 • IAS 37 Provisions, Contingent Liabilities and Contingent Assets - Very similar to ASPE and therefore to PSAS ... • An asset retirement obligation is a legal obligation associated with the retirement of a tangible capital asset. ASPE IFRS Restructuring Costs Under ASPE, there is no specific standard that provides … Preparing Personal Tax Returns (T1) Using CCH Tax Prep, Preparing Corporate Tax Returns (T2) Using CCH Tax Prep, Preparing Trust Returns (T3) Using CCH Tax Prep (Coming Soon), Preparing Partnership Returns (T5013) Using CCH Tax Prep (Coming Soon), Tax Planning: Purchase and Sale of an Owner-Managed Business, Protecting Your Clients and Your Professional Practice from Unexpected CRA Penalties, Death of a Taxpayer and Post Mortem Tax Planning, Taxation of Snowbirds: U.S. Tax for Canadian Tax Professionals, International Tax - Canadian Outbound Taxation, Foreign Affiliates, International Tax - Canadian Inbound Taxation for Non-Resident Corporations, International Tax - Completing Foreign Reporting Forms, See all our online tax courses and webinars, existing or enacted law, statute, ordinance or, by the doctrine of promissory estoppel (reliance on a promise is reasonable and foreseeable; and damage would result to the party promised if promise not enforced), The ARO must also meet the definition of a liability, they embody a duty to others that entails yielding of economic benefits, event obligating the entity has already occurred, Therefore, if the obligation is to clean up a site, the ARO is recorded as the contamination occurs, The amount recognized as an ARO shall be the, The amount entity would pay to settle the obligation at the balance sheet date, ARO is reviewed at each balance sheet and adjusted to reflect the current best estimate, When the liability for an ARO is recognized, increase the carrying amount of the related long-lived asset by the same amount (cr. enterprises (“ASPE”) Section 1521, ... Asset retirement obligations Other financial liabilities Equity shall be presented in accordance with the requirements of Section 3251, Equity. Account Titles and Explanation Debit Credit Date Dec. 31, 2025 List of Accounts Prepare the journal entries to record the acquisition of the drilling platform, and the asset retirement obligation for the platform, on January 1, 2020, assuming that Ayayai prepares financial statements in accordance with ASPE. 7 Deloitte earning Academy ourse catalogue or accounting proessionals Entities recognize a liability for an asset retirement obligation when incurred if its fair value reasonably can be estimated. This publication is designed to assist professionals in understanding the accounting for asset retirement obligations. 6. If you find this article useful, please share it with your friends. Introducing, the CPA PEP ASPE/IFRS Asset Retirement Obligations Review – covering the most tested Financial Reporting competency topic: AROs. What is an Asset Retirement Obligation? An asset retirement obligation (ARO) is a legal obligation that is associated with the retirement of a tangible, long-term asset. Introduction to Asset Retirement Obligation Asset Retirement Obligation is a legal and accounting requirement, in which a company needs to make provisions for the retirement of a tangible long-lived asset, to bring the asset back to its original condition after the … Under ASPE, an asset retirement obligation must be legally required to be recognized. Courses. from discounting) is recognized as, The changes to the liability recognized due to changes in the cash flows are adjusted to the liability and the long-term asset the ARO applies to, ARO Is covered under IAS 37 (Provisions) and IAS 16 (PPE). An asset retirement obligation is the liability for the removal of property, equipment, or leasehold improvements at the end of the lease term. One of the many nuances of lease accounting, an asset retirement obligation (ARO) is a liability related to the retirement of a tangible long-lived asset when the timing or method of settlement might be dependent upon a future event. The liability is commonly a legal requirement to return a site to its previous condition. h��Vmo�0�+���w;�Ф�l0�n��4�ChM��U���sw�Ӵt�o�:���|w~�T*�2����)��9⚥� ��C�2#KL��gRX���2(� �n��l6͛������۱N��]u�*. An asset retirement obligation (ARO) is a legal obligation associated with the retirement of a tangible long-lived asset that an entity is required to settle as a result of an existing or enacted law, statute, ordinance or written or oral contract or %%EOF $55 endstream endobj startxref Section 3110 – Asset Retirement Obligations January 01, 2013 Section 3110 applies to: Legal obligations associated with the retirement of a tangible long-lived asset that results from its acquisition, construction, development or normal operation. 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