# ASC 410-20-05: Asset Retirement and Environmental Obligations — Asset Retirement Obligations — 05 Overview and Background

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/410/20/#05-overview-and-background)

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## ASC 410-20-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/410/20/#05-overview-and-background)

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##### [410-20-05-1](https://asc.understandingaccounting.org/asc/410/20/#410-20-05-1)

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This Subtopic establishes accounting standards for recognition and measurement of a liability for an [asset retirement obligation](https://asc.understandingaccounting.org/glossary/a/#asset-retirement-obligation "An obligation associated with the retirement of a tangible long-lived asset.") and the associated [asset retirement cost](https://asc.understandingaccounting.org/glossary/a/#asset-retirement-cost "The amount capitalized that increases the carrying amount of the long-lived asset when a liability for an asset retirement obligation is recognized."). This Subtopic also addresses the accounting for an environmental remediation liability that results from the normal operation of a long-lived asset.

##### [410-20-05-2](https://asc.understandingaccounting.org/asc/410/20/#410-20-05-2)

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