# ASC 410-20-45: Asset Retirement and Environmental Obligations — Asset Retirement Obligations — 45 Other Presentation Matters

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/410/20/#45-other-presentation-matters)

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## ASC 410-20-45: 45 Other Presentation Matters

[Read section](https://asc.understandingaccounting.org/asc/410/20/#45-other-presentation-matters)

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#### Classification of Accretion Expense

##### [410-20-45-1](https://asc.understandingaccounting.org/asc/410/20/#410-20-45-1)

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[Accretion expense](https://asc.understandingaccounting.org/glossary/a/#accretion-expense "An amount recognized as an expense classified as an operating item in the statement of income resulting from the increase in the carrying amount of the liability associated with the asset retirement obligation.") shall be classified as an operating item in the statement of income. An entity may use any descriptor for accretion expense so long as it conveys the underlying nature of the expense.

##### [410-20-45-2](https://asc.understandingaccounting.org/asc/410/20/#410-20-45-2)

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See paragraph [230-10-45-17](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-17) for additional information about the classification of cash payments for [asset retirement obligations](https://asc.understandingaccounting.org/glossary/a/#asset-retirement-obligation "An obligation associated with the retirement of a tangible long-lived asset.") as operating items on the statement of cash flows.

#### Statement of Cash Flows

##### [410-20-45-3](https://asc.understandingaccounting.org/asc/410/20/#410-20-45-3)

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Paragraph [230-10-45-17(e)](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-17) states that a cash payment made to settle an asset retirement obligation is a cash outflow for operating activities.