# ASC 410-30-30: Asset Retirement and Environmental Obligations — Environmental Obligations — 30 Initial Measurement Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/410/30/#30-initial-measurement) 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): 2026-09-10T00:21:36.393Z to 2026-09-10T00:21:36.393Z Record version: sha256:d81de75cbd1c1133bdefe94154e2a07cdca3df8ea12c917866dd5293deee46d6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 410-30-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/410/30/#30-initial-measurement) SEC content: no #### Allocation of Liability Among Potentially Responsible Parties ##### [410-30-30-1](https://asc.understandingaccounting.org/asc/410/30/#410-30-30-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:21:36.393Z to 2026-09-10T00:21:36.393Z Record version: sha256:4f89c7634011de65ebd5f722fd6a5e55a048bed1164f386636f6d0a8e7268c62 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. At the early stages of the remediation process, environmental remediation liabilities are not easily quantified, due in part to their uncertainties. As a practical matter, the range of an estimated remediation liability will be defined and refined as events in the remediation process occur. The environmental remediation liability recorded by an entity should be based on that entity's estimate of its allocable share of the joint and several remediation liability. The estimation of an entity's allocable share of the joint and several remediation liability (see paragraph [410-30-55-4](https://asc.understandingaccounting.org/asc/410/30/#410-30-55-4)) for a site requires an entity to do all of the following: 1. a Identify the [potentially responsible parties](https://asc.understandingaccounting.org/glossary/p/#potentially-responsible-party "Any individual, legal entity, or government—including owners, operators, transporters, or generators—potentially responsible for, or contributing to, the environmental impacts at a Superfund site. The Environmental Protection Agency has the authority to require potentially responsible parties, through administrative and legal actions, to remediate such sites. At early stages of the remediation process, the list of potentially responsible parties may be limited to a handful of entities that either were significant contributors of waste to the site or were easy to identify, for example, because of their proximity to the site or because of labeled material found at the site. As further investigation of the site occurs and as remediation activities take place, additional potentially responsible parties may be identified. Once identified, the additional potentially responsible parties would be reclassified from this category to either the participating potentially responsible party or recalcitrant potentially responsible party category. The total number of parties in this category and their aggregate allocable share of the remediation liability varies by site and cannot be reliably determined before the specific identification of individual potentially responsible parties. For example, some ultimately may be dropped from the potentially responsible party list because no substantive evidence is found to link them to the site. For others, substantive evidence eventually may be found that points to their liability. The presentation of that evidence to the entity would result in a reclassification of the party from this category of potentially responsible parties (sometimes referred to as hiding in the weeds) to either the participating potentially responsible party or recalcitrant potentially responsible party category.") for the site 2. b Assess the likelihood that other potentially responsible parties will pay their full allocable share of the joint and several remediation liability 3. c Determine the percentage of the liability that will be allocated to the entity. ##### [410-30-30-2](https://asc.understandingaccounting.org/asc/410/30/#410-30-30-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:21:36.393Z to 2026-09-10T00:21:36.393Z Record version: sha256:4e6ba1929d92a11a4718b5f2d289268d169507a60881b9dc6b8498e19679fe1e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For purposes of estimating an entity's allocable share of the joint and several remediation liability for a site, those parties that are potentially responsible for paying the remediation liability belong to one of the following five potentially responsible party categories: 1. a [Participating potentially responsible parties](https://asc.understandingaccounting.org/glossary/p/#participating-potentially-responsible-party "A party to a Superfund site that has acknowledged potential involvement with respect to the site. Active potentially responsible parties may participate in the various administrative, negotiation, monitoring, and remediation activities related to the site. Others may adopt a passive stance and simply monitor the activities and decisions of the more involved potentially responsible parties. This passive stance could result from a variety of factors such as the entity's lack of experience, limited internal resources, or relative involvement at a site. This category of potentially responsible parties (both active and passive) is also referred to as players.") 2. b [Recalcitrant potentially responsible parties](https://asc.understandingaccounting.org/glossary/r/#recalcitrant-potentially-responsible-party "A party whose liability with respect to a Superfund site is substantiated by evidence, but that refuses to acknowledge potential involvement with respect to the site. Recalcitrant potentially responsible parties adopt a recalcitrant attitude toward the entire remediation effort even though evidence exists that points to their involvement at a site. Some may adopt this attitude out of ignorance of the law; others may do so in the hope that they will be considered a nuisance and therefore ignored. Typically, parties in this category must be sued in order to collect their allocable share of the remediation liability; however, it may be that it is not economical to bring such suits because the parties' assets are limited. This category of potentially responsible parties is also referred to as nonparticipating potentially responsible parties.") 3. c [Unproven potentially responsible parties](https://asc.understandingaccounting.org/glossary/u/#unproven-potentially-responsible-party "A party that has been identified as a potentially responsible party for a Superfund site by the U.S. Environmental Protection Agency or by an analogous state agency, but that does not acknowledge potential involvement with respect to the site because no evidence has been presented linking the party to the site. Also referred to as a hiding-in-the-weeds potentially responsible party.") 4. d [Unknown potentially responsible parties](https://asc.understandingaccounting.org/glossary/u/#unknown-potentially-responsible-party "A party that has liability with respect to a Superfund site, but that has not yet been identified as a potentially responsible party by the Environmental Protection Agency or by an analogous state agency.") 5. e [Orphan share potentially responsible parties](https://asc.understandingaccounting.org/glossary/o/#orphan-share-potentially-responsible-party "An identified potentially responsible party that cannot be located or that is insolvent. Some of these parties may be identified by the Environmental Protection Agency; others may be identified as the site is investigated or as the remediation is performed. However, no contributions will ever be made by these parties."). ##### [410-30-30-3](https://asc.understandingaccounting.org/asc/410/30/#410-30-30-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:21:36.393Z to 2026-09-10T00:21:36.393Z Record version: sha256:8f9ef429cc5c77d5e98c6547297580d0a3bd74746994dd9814195e9af5e45e32 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Over the duration of a remediation project, individual entities may move from one potentially responsible parties category to another. ##### [410-30-30-4](https://asc.understandingaccounting.org/asc/410/30/#410-30-30-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:21:36.393Z to 2026-09-10T00:21:36.393Z Record version: sha256:789ac614a4d138e1a7754f05021d6b865ea814365ae21ab77948d31eea47adfa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In estimating its allocable share of the joint and several remediation liability for a site, there is a rebuttable presumption that costs will be allocated only among participating potentially responsible parties, as that category exists at the date of issuance of the financial statements. ##### [410-30-30-5](https://asc.understandingaccounting.org/asc/410/30/#410-30-30-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:21:36.393Z to 2026-09-10T00:21:36.393Z Record version: sha256:0a0e7a6d8d660f78c83c1784114800f9f18c841b1a591d8096dcae14bd25858a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall determine its allocable share of the joint and several remediation liability for a site based on its estimate of the allocation method and percentage that ultimately will be used for the entire remediation effort. The primary sources for this estimate shall be the allocation method and percentages that: 1. a The potentially responsible parties have agreed to (whether that agreement applies to the entire remediation effort or to the costs incurred in the current phase of the remediation process) 2. b Have been assigned by a consultant 3. c Have been determined by the Environmental Protection Agency. ##### [410-30-30-6](https://asc.understandingaccounting.org/asc/410/30/#410-30-30-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:21:36.393Z to 2026-09-10T00:21:36.393Z Record version: sha256:f5fdfef760b3a702451fcaf36d1363eeea9125cd18aba38c3e31287d7fccd476 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the entity's estimate of the ultimate allocation method and percentage differs significantly from the method or percentage from these primary sources, the entity's estimate should be based on objective, verifiable information. Examples of objective, verifiable information include all of the following: 1. a Existing data about the kinds and quantities of waste at the site 2. b Experience with allocation approaches in comparable situations 3. c Reports of environmental specialists (internal or external) 4. d Internal data refuting Environmental Protection Agency allegations about the entity's contribution of waste (kind, volume, and so forth) to the site. ##### [410-30-30-7](https://asc.understandingaccounting.org/asc/410/30/#410-30-30-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:21:36.393Z to 2026-09-10T00:21:36.393Z Record version: sha256:8ce8ba9f7aee77568233f59916738fb3c70ebe1853a5610c52c5425dad62a2c8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity should assess the likelihood that each potentially responsible party will pay its allocable share of the joint and several remediation liability. That assessment should be based primarily on the financial condition of the participating potentially responsible party. This assessment requires the entity to gain an understanding of the financial condition of the other participating potentially responsible parties and to update and monitor this information as the remediation progresses. The entity shall include in its liability its share of amounts related to the site that will not be paid by other potentially responsible parties or the government. #### Costs to Be Included in Remediation Liability ##### [410-30-30-8](https://asc.understandingaccounting.org/asc/410/30/#410-30-30-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:21:36.393Z to 2026-09-10T00:21:36.393Z Record version: sha256:3afe9f1941b2fc73af67f0e709f1d4ee107e5944a0232ff615f246fa16eca9af Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Once an entity has determined that it is probable that an environmental remediation liability has been incurred, the entity shall estimate that liability based on available information (see also paragraphs [410-30-25-7 through 25-13](https://asc.understandingaccounting.org/asc/410/30/#410-30-25-7) ).The estimate of the liability shall include the entity's: 1. a Allocable share of the liability for a specific site 2. b Share of amounts related to the site that will not be paid by other potentially responsible parties or the government. ##### [410-30-30-9](https://asc.understandingaccounting.org/asc/410/30/#410-30-30-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:21:36.393Z to 2026-09-10T00:21:36.393Z Record version: sha256:74cab661f2007cb41c90e49b5d2117446066e8547e4529511bf9e68289e1d598 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Making the appropriate measurement of an entity's remediation liability involves the following issues: 1. a Costs that should be included in the measurement 2. b Whether the measurement should consider the effects of expected future events or developments, including discounting considerations 3. c How the measurement should be affected by the existence of other potentially responsible parties 4. d How the measurement should be affected by potential recoveries. ##### [410-30-30-10](https://asc.understandingaccounting.org/asc/410/30/#410-30-30-10) Pending content: no Source downloaded (UTC): 2026-09-10T00:21:36.393Z to 2026-09-10T00:21:36.393Z Record version: sha256:755e5c692c546792bcd3f87c223f1d27b155d41ac140b7255b4e8db773bae4b2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs to be included in the measurement are the following: 1. a Incremental direct costs of the remediation effort (see paragraph [410-30-55-1](https://asc.understandingaccounting.org/asc/410/30/#410-30-55-1)) 2. b Costs of compensation and benefits for those employees who are expected to devote a significant amount of time directly to the remediation effort, to the extent of the time expected to be spent directly on the remediation effort. ##### [410-30-30-11](https://asc.understandingaccounting.org/asc/410/30/#410-30-30-11) Pending content: no Source downloaded (UTC): 2026-09-10T00:21:36.393Z to 2026-09-10T00:21:36.393Z Record version: sha256:3ca6958cbc86fc3668a2731204c50128e035bb3e92ce657397099e183c1e4664 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The remediation effort is considered on a site-by-site basis; it includes the following: 1. a Precleanup activities, such as the performance of a remedial investigation, risk assessment, or feasibility study and the preparation of a [remedial action](https://asc.understandingaccounting.org/glossary/r/#remedial-action "Related to Superfund: generally long-term actions taken to do any of the following: Investigate, alleviate, or eliminate the effects of a release of a hazardous substance into the environment Investigate, alleviate, or eliminate a threat of the release of an existing hazardous substance that could potentially harm human health or the environment Restore natural resources. Also refers to corrective action under the Resource Conservation and Recovery Act of 1976.") plan and remedial designs for a Superfund site, or the performance of a Resource Conservation and Recovery Act of 1976 facility assessment, facility investigation, or corrective measures studies 2. b Performance of remedial actions under Superfund, corrective actions under the Resource Conservation and Recovery Act of 1976, and analogous actions under state and non-U.S. laws 3. c Government oversight and enforcement-related activities 4. d Operation and maintenance of the remedy, including required postremediation monitoring. ##### [410-30-30-12](https://asc.understandingaccounting.org/asc/410/30/#410-30-30-12) Pending content: no Source downloaded (UTC): 2026-09-10T00:21:36.393Z to 2026-09-10T00:21:36.393Z Record version: sha256:1773a7a87f7732d26d543f2875fae38c943c7df4625f319e8b8dd2d4c2caa197 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Determining any of the following is part of the remediation effort: 1. a The extent of remedial actions that are required 2. b The type of remedial actions to be used 3. c The allocation of costs among potentially responsible parties. The costs of making such determinations, including legal costs, shall be included in the measurement of the remediation liability. ##### [410-30-30-13](https://asc.understandingaccounting.org/asc/410/30/#410-30-30-13) Pending content: no Source downloaded (UTC): 2026-09-10T00:21:36.393Z to 2026-09-10T00:21:36.393Z Record version: sha256:2a462c829aa75ea2d898e1d6ae8c0b18189a1112b19e1e4a18d60c89135bcaea Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The costs of services related to routine environmental compliance matters and litigation costs involved with potential recoveries are not part of the remediation effort. ##### [410-30-30-14](https://asc.understandingaccounting.org/asc/410/30/#410-30-30-14) Pending content: no Source downloaded (UTC): 2026-09-10T00:21:36.393Z to 2026-09-10T00:21:36.393Z Record version: sha256:f8b73eb005f62f27202d8040a80f30cc23d971de24fbe49757aa212d10a573ab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Litigation costs involved with potential recoveries shall be charged to expense as incurred until realization of the claim for recovery is considered probable and an asset relating to the recovery is recognized, at which time any remaining such legal costs shall be considered in the measurement of the recovery. ##### [410-30-30-15](https://asc.understandingaccounting.org/asc/410/30/#410-30-30-15) Pending content: no Source downloaded (UTC): 2026-09-10T00:21:36.393Z to 2026-09-10T00:21:36.393Z Record version: sha256:419950cf5aa7dbe36cdf2c3f57b4fcd4c3eb5bdc93ab46a189b60b104caa7d22 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The determination of what legal costs are for potential recoveries rather than for determining the allocation of costs among potentially responsible parties will depend on the specific facts and circumstances of each situation. For purposes of measuring environmental remediation liabilities, the measurement shall be based on enacted laws and adopted regulations and policies. No changes should be anticipated. The remedial action plan that is used to develop the estimate of the liability shall be based on the methodology that is expected to be approved to complete the remediation effort. ##### [410-30-30-16](https://asc.understandingaccounting.org/asc/410/30/#410-30-30-16) Pending content: no Source downloaded (UTC): 2026-09-10T00:21:36.393Z to 2026-09-10T00:21:36.393Z Record version: sha256:61b8c81b55ef77087749a064c95364aaf55df17fb8fff387e1dc23020026c9f5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs to defend against assertions of liability in the context of environmental remediation liabilities involve determining whether an entity is responsible for participating in a remediation process. ##### [410-30-30-17](https://asc.understandingaccounting.org/asc/410/30/#410-30-30-17) Pending content: no Source downloaded (UTC): 2026-09-10T00:21:36.393Z to 2026-09-10T00:21:36.393Z Record version: sha256:135e7498c315235f1b6913870d59df440283d623d1c16ee1ce3ec51327f02a06 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The measurement of environmental remediation liabilities shall be based on the reporting entity's estimate of what it will cost to perform each of the elements of the remediation effort (determined in accordance with paragraphs [410-30-30-11 through 30-15](https://asc.understandingaccounting.org/asc/410/30/#410-30-30-11) ) when those elements are expected to be performed. Although this approach is sometimes referred to as considering inflation, it does not simply rely on an inflation index (cost estimates submitted to the Environmental Protection Agency usually include a prescribed inflation factor) and should take into account factors such as productivity improvements due to learning from experience with similar sites and similar remedial action plans. In situations in which it is not practicable to estimate inflation and such other factors because of uncertainty about the timing of expenditures, a current-cost estimate would be the minimum in the range of the liability to be recorded until such time as these cost effects can be reasonably estimated. ##### [410-30-30-18](https://asc.understandingaccounting.org/asc/410/30/#410-30-30-18) Pending content: no Source downloaded (UTC): 2026-09-10T00:21:36.393Z to 2026-09-10T00:21:36.393Z Record version: sha256:5c51ef040eef406f098b240daeb72911ba1a9772d2c8c8adca3318704065061a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When an overall liability is estimated by combining estimates of various components of the liability, additional possible losses present in the component estimates must be considered in determining an overall additional possible loss. ##### [410-30-30-19](https://asc.understandingaccounting.org/asc/410/30/#410-30-30-19) Pending content: no Source downloaded (UTC): 2026-09-10T00:21:36.393Z to 2026-09-10T00:21:36.393Z Record version: sha256:0de65e1ea2b63f6d0133261b54ec14dbdd61746f7133c5ca252e66b38b0abb5a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A probable recovery shall be measured at its undiscounted amount if both of the following criteria are met: 1. a The liability is not discounted. 2. b The timing of the recovery is dependent on the timing of the payment of the liability. For implementation guidance on the second criterion, see paragraph [410-30-55-6](https://asc.understandingaccounting.org/asc/410/30/#410-30-55-6).