Flashcards in F10: Asset Retirement Obligations Deck (4)
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1
What is an ARO?
A legal obligation (liability) associated with retirement of a tangible long-lived asset that results from the acquisition, construction, or development and/or normal operation of a long-lived asset
2
ARC
Asset Retirement Cost
-the amount capitalized (asset) that increases the carrying amount of the long-lived asset when a liability for an ARO is recognized
3
Accretion Expense definition
The increase in ARO liability due to the passage of time calculated using the appropriate accretion date
4
