# ASC 420-10-10: Exit or Disposal Cost Obligations — Overall — 10 Objectives

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/420/10/#10-objectives)

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## ASC 420-10-10: 10 Objectives

[Read section](https://asc.understandingaccounting.org/asc/420/10/#10-objectives)

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##### [420-10-10-1](https://asc.understandingaccounting.org/asc/420/10/#420-10-10-1)

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The objective of the Exit or Disposal Cost Obligations Topic is to improve financial reporting by requiring that a liability for a cost associated with an exit or disposal activity be recognized and measured initially at fair value only when the liability is incurred.