ASC

ASC 410-10

Overall

410 Asset Retirement and Environmental Obligations

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In brief

IntroductoryRecognitionContingencies and guaranteesInventory and PP&E

ASC 410-10 is a purely navigational "Overall" subtopic within the Asset Retirement and Environmental Obligations Topic. Its sole purpose is to explain the difference between Subtopic 410-20 (asset retirement obligations, the associated asset retirement cost, and environmental remediation liabilities arising from normal operation of a long-lived asset) and Subtopic 410-30 (environmental remediation liabilities generally). It contains no independent recognition or measurement rules.

Key points (5)
  • Topic 410 comprises three Subtopics: Overall (410-10), Asset Retirement Obligations (410-20), and Environmental Obligations (410-30) (410-10-05-1).
  • The sole purpose of the Overall Subtopic is to explain the differences between the other two Subtopics (410-10-05-2).
  • Subtopic 410-20 governs the liability for an asset retirement obligation and the associated asset retirement cost, and also an environmental remediation liability that results from the normal operation of a long-lived asset (see 410-20-55-7).
  • Subtopic 410-30 governs accounting and financial reporting for environmental remediation liabilities (i.e., those not arising from normal operation of a long-lived asset) (410-10-05-2).
  • 410-10 itself prescribes no recognition, measurement, presentation, or disclosure requirements; the operative guidance resides in 410-20 and 410-30.

For students. The exam trap is picking the wrong subtopic: if the environmental liability arises from the normal operation of a long-lived asset (e.g., legally required removal of contaminated equipment at retirement), it is an ARO under 410-20; remediation of past contamination or improper operation falls under 410-30. 410-10 itself has no substantive rules.

asset retirement obligationasset retirement costenvironmental remediation liabilitylong-lived assetnormal operationscope navigation

Machine-generated study aid for ASC 410-10. Check the source paragraphs below.

410-10-00Status

Source downloaded: .Record version 48fb897fc6d2. Effective date must be checked in the source.

410-10-00-1
No updates have been made to this subtopic.

410-10-05Overview and Background

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410-10-05-1
The Asset Retirement and Environmental Obligations Topic includes the following Subtopics:
  1. a
    Overall
  2. b
    Asset Retirement Obligations
  3. c
    Environmental Obligations.
410-10-05-2
The sole purpose of the Overall Subtopic is to explain the differences between the other two Subtopics. Subtopic 410-20 provides guidance on accounting for and financial reporting of a liability for an asset retirement obligation (and the associated asset retirement cost) and an environmental remediation liability that results from the normal operation of a long-lived asset (see paragraph 410-20-55-7). Subtopic 410-30 provides guidance on accounting for and financial reporting of environmental remediation liabilities.

Related subtopics