# ASC 420-10-35: Exit or Disposal Cost Obligations — Overall — 35 Subsequent Measurement

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/420/10/#35-subsequent-measurement)

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## ASC 420-10-35: 35 Subsequent Measurement

[Read section](https://asc.understandingaccounting.org/asc/420/10/#35-subsequent-measurement)

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#### Changes in Estimates

##### [420-10-35-1](https://asc.understandingaccounting.org/asc/420/10/#420-10-35-1)

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In periods subsequent to initial measurement, changes to the liability, including a change resulting from a revision to either the timing or the amount of estimated cash flows over the future service period, shall be measured using the credit-adjusted risk-free rate that was used to measure the liability initially.

##### [420-10-35-2](https://asc.understandingaccounting.org/asc/420/10/#420-10-35-2)

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The cumulative effect of a change resulting from a revision to either the timing or the amount of estimated cash flows shall be recognized as an adjustment to the liability in the period of the change.

##### [420-10-35-3](https://asc.understandingaccounting.org/asc/420/10/#420-10-35-3)

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If a plan of termination changes and employees that were expected to be terminated within the minimum retention period are retained to render service beyond that period, a liability previously recognized at the [communication date](https://asc.understandingaccounting.org/glossary/c/#communication-date "The date the plan of termination for one-time employee termination benefits meets all of the criteria in paragraph 420-10-25-4 and has been communicated to employees.") shall be adjusted to the amount that would have been recognized if the provisions of paragraph [420-10-25-9](https://asc.understandingaccounting.org/asc/420/10/#420-10-25-9) had been applied in all periods subsequent to the communication date.

##### [420-10-35-4](https://asc.understandingaccounting.org/asc/420/10/#420-10-35-4)

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Changes due to the passage of time shall be recognized as an increase in the carrying amount of the liability and as an expense (for example, accretion expense). Accretion expense shall not be considered interest cost for purposes of applying Subtopic 835-20.