legal obligation

Liabilities1

1. 410-20Asset Retirement Obligations410 Asset Retirement and Environmental Obligations

   ASC 410-20 governs legal obligations associated with the retirement of tangible long-lived assets that arise from acquisition, construction, development, and/or normal operation of the asset, including environmental remediation resulting from normal operations. An entity recognizes the fair value of the ARO liability in the period incurred if fair value can be reasonably estimated, and simultaneously capitalizes an equal asset retirement cost in the carrying amount of the related long-lived asset (410-20-25-4; 410-20-25-5). Fair value is normally measured with an expected present value technique discounted at a credit-adjusted risk-free rate, with later changes recognized as accretion expense and as revisions to estimated cash flows (410-20-30-1; 410-20-35-3).