# ASC 410-20-15: Asset Retirement and Environmental Obligations — Asset Retirement Obligations — 15 Scope and Scope Exceptions Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/410/20/#15-scope-and-scope-exceptions) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T00:20:45.653Z to 2026-09-10T00:20:45.653Z Record version: sha256:e49e30da13f75514707023b1be4ea06c7687d12264a10729550a4997e108d42e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 410-20-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/410/20/#15-scope-and-scope-exceptions) SEC content: no #### Entities ##### [410-20-15-1](https://asc.understandingaccounting.org/asc/410/20/#410-20-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:20:45.653Z to 2026-09-10T00:20:45.653Z Record version: sha256:be8e03d84ab05d180fb9cf34aff99d38c0457483756ccee23f8253ec6e7eef61 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to all entities, including rate-regulated entities that meet the criteria for application of Subtopic 980-10, as provided in paragraph [980-10-15-2](https://asc.understandingaccounting.org/asc/980/10/#980-10-15-2). Paragraphs [980-340-25-1](https://asc.understandingaccounting.org/asc/340/980/#340-980-25-1) and [980-405-25-1](https://asc.understandingaccounting.org/asc/405/980/#405-980-25-1) provide specific conditions that must be met to recognize a regulatory asset and a regulatory liability, respectively. (See paragraphs [410-20-55-1 through 55-12](https://asc.understandingaccounting.org/asc/410/20/#410-20-55-1) and [410-20-55-21 through 55-22](https://asc.understandingaccounting.org/asc/410/20/#410-20-55-21) for implementation guidance) #### Transactions ##### [410-20-15-2](https://asc.understandingaccounting.org/asc/410/20/#410-20-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:20:45.653Z to 2026-09-10T00:20:45.653Z Record version: sha256:0d0c4c18e99f68733e5e385a5837482c0bc817a29ad82615cdc1c2f68a4e02e9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to the following transactions and activities: 1. a [Legal obligations](https://asc.understandingaccounting.org/glossary/l/#legal-obligation "An obligation that a party is required to settle as a result of an existing or enacted law, statute, ordinance, or written or oral contract or by legal construction of a contract under the doctrine of promissory estoppel.") associated with the [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.")of a tangible long-lived asset that result from the acquisition, construction, or development and (or) the normal operation of a long-lived asset, including any legal obligations that require [disposal](https://asc.understandingaccounting.org/glossary/d/#disposal "Related to the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 and the Resource Conservation and Recovery Act of 1976: under the Resource Conservation and Recovery Act of 1976, the discharge, deposit, injection, dumping, spilling, leaking, or placing of any solid waste or hazardous waste into or on any land or water so that such solid waste or hazardous waste or any constituent thereof may enter the environment or be emitted into the air or discharged into any waters, including groundwaters. Similarly under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 with regard to hazardous substances.") of a replaced part that is a component of a tangible long-lived asset. 2. b An environmental remediation liability that results from the normal operation of a long-lived asset and that is associated with the retirement of that asset. The fact that partial settlement of an obligation is required or performed before full retirement of an asset does not remove that obligation from the scope of this Subtopic. If environmental contamination is incurred in the normal operation of a long-lived asset and is associated with the retirement of that asset, then this Subtopic will apply (and Subtopic 410-30 will not apply) if the entity is legally obligated to treat the contamination. 3. c A conditional obligation to perform a retirement activity. Uncertainty about the timing of settlement of the [asset retirement obligation](https://asc.understandingaccounting.org/glossary/a/#asset-retirement-obligation "An obligation associated with the retirement of a tangible long-lived asset.") does not remove that obligation from the scope of this Subtopic but will affect the measurement of a liability for that obligation (see paragraph [410-20-25-10](https://asc.understandingaccounting.org/asc/410/20/#410-20-25-10)). 4. d Obligations of a [lessor](https://asc.understandingaccounting.org/glossary/l/#lessor "An entity that enters into a contract to provide the right to use an underlying asset for a period of time in exchange for consideration.") in connection with an [underlying asset](https://asc.understandingaccounting.org/glossary/u/#underlying-asset "An asset that is the subject of a lease for which a right to use that asset has been conveyed to a lessee. The underlying asset could be a physically distinct portion of a single asset.") that meet the provisions in (a). 5. e The costs associated with the retirement of a specified asset that qualifies as historical waste equipment as defined by EU Directive 2002/96/EC. (See paragraphs [410-20-55-23 through 55-30](https://asc.understandingaccounting.org/asc/410/20/#410-20-55-23) and Example 4 \[paragraph [410-20-55-63](https://asc.understandingaccounting.org/asc/410/20/#410-20-55-63)\] for illustration of this guidance.) Paragraph [410-20-55-24](https://asc.understandingaccounting.org/asc/410/20/#410-20-55-24) explains how the Directive distinguishes between new and historical waste and provides related implementation guidance. ##### [410-20-15-3](https://asc.understandingaccounting.org/asc/410/20/#410-20-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:20:45.653Z to 2026-09-10T00:20:45.653Z Record version: sha256:8caa2131024b66a2e302c155f2f8146959a90a2ce7cd22b0bcfbc986dfc6a938 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic does not apply to the following transactions and activities: 1. a Obligations that arise solely from a plan to sell or otherwise dispose of a long-lived asset covered by Subtopic 360-10. 2. b An environmental remediation liability that results from the improper operation of a long-lived asset (see Subtopic 410-30). Obligations resulting from improper operations do not represent costs that are an integral part of the tangible long-lived asset and therefore should not be accounted for as part of the cost basis of the asset. For example, a certain amount of spillage may be inherent in the normal operations of a fuel storage facility, but a catastrophic accident caused by noncompliance with an entity's safety procedures is not. The obligation to clean up the spillage resulting from the normal operation of the fuel storage facility is within the scope of this Subtopic. The obligation to clean up after the catastrophic accident results from the improper use of the facility and is not within the scope of this Subtopic. 3. c Activities necessary to prepare an asset for an alternative use as they are not associated with the retirement of the asset. 4. d Historical waste held by private households. (The guidance in this paragraph does not pertain to an asset retirement obligation in the scope of this Subtopic.) For guidance on accounting for historical electronic equipment waste held by private households for obligations associated with Directive 2002/96/EC on Waste Electrical and Electronic Equipment adopted by the European Union, see Subtopic 720-40. 5. e Obligations of a [lessee](https://asc.understandingaccounting.org/glossary/l/#lessee "An entity that enters into a contract to obtain the right to use an underlying asset for a period of time in exchange for consideration.") in connection with an [underlying asset](https://asc.understandingaccounting.org/glossary/u/#underlying-asset "An asset that is the subject of a lease for which a right to use that asset has been conveyed to a lessee. The underlying asset could be a physically distinct portion of a single asset."), whether imposed by a [lease](https://asc.understandingaccounting.org/glossary/l/#lease "A contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration.") or by a party other than the lessor, that meet the definition of either [lease payments](https://asc.understandingaccounting.org/glossary/l/#lease-payments "See paragraph 842-10-30-5 for what constitutes lease payments from the perspective of a lessee and a lessor.") or [variable lease payments](https://asc.understandingaccounting.org/glossary/v/#variable-lease-payments "Payments made by a lessee to a lessor for the right to use an underlying asset that vary because of changes in facts or circumstances occurring after the commencement date, other than the passage of time.") in Subtopic 842-10. Those obligations shall be accounted for by the lessee in accordance with the requirements of Subtopic 842-10. However, if obligations of a lessee in connection with an underlying asset, whether imposed by a lease or by a party other than the lessor, meet the provisions in paragraph [410-20-15-2](https://asc.understandingaccounting.org/asc/410/20/#410-20-15-2) but do not meet the definition of either lease payments or variable lease payments in Subtopic 842-10, those obligations shall be accounted for by the lessee in accordance with the requirements of this Subtopic. 6. f An obligation for asbestos removal that results from the other-than-normal operation of an asset. Such an obligation may be subject to the provisions of Subtopic 410-30. 7. g Costs associated with complying with funding or assurance provisions. Paragraph [410-20-35-9](https://asc.understandingaccounting.org/asc/410/20/#410-20-35-9) otherwise addresses the measurement effects of funding and assurance provisions. 8. h Obligations associated with maintenance, rather than retirement, of a long-lived asset. 9. i The cost of a replacement part that is a component of a long-lived asset.