# ASC 410-10-05: Asset Retirement and Environmental Obligations — Overall — 05 Overview and Background

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/410/10/#05-overview-and-background)

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## ASC 410-10-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/410/10/#05-overview-and-background)

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##### [410-10-05-1](https://asc.understandingaccounting.org/asc/410/10/#410-10-05-1)

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The Asset [Retirement](https://asc.understandingaccounting.org/glossary/r/#retirement "The other-than-temporary removal of a long-lived asset from service. That term encompasses sale, abandonment, recycling, or disposal in some other manner. However, it does not encompass the temporary idling of a long-lived asset. After an entity retires an asset, that asset is no longer under the control of that entity, no longer in existence, or no longer capable of being used in the manner for which the asset was originally acquired, constructed, or developed.") and Environmental Obligations Topic includes the following Subtopics:

1.  a
    
    Overall
    
2.  b
    
    Asset Retirement Obligations
    
3.  c
    
    Environmental Obligations.

##### [410-10-05-2](https://asc.understandingaccounting.org/asc/410/10/#410-10-05-2)

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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](https://asc.understandingaccounting.org/asc/410/20/#410-20-55-7)). Subtopic 410-30 provides guidance on accounting for and financial reporting of environmental remediation liabilities.