The Governmental Accounting Standards Board is inviting comments until March 31, 2016, to Exposure Draft, Certain Asset Retirement Obligations, issued in December 2015. The primary objective of the proposed standard is to enhance the comparability and consistency in accounting and financial reporting of certain asset retirement obligations among state and local governments. The Exposure Draft would establish guidance for determining the timing and pattern of recognition for liabilities related to asset retirement obligations and corresponding deferred outflows of resources. An asset retirement obligation is a legally enforceable liability associated with the retirement of a tangible capital asset, such as dismantling and removal of sewage treatment plants.
The GASB would be interested in feedback from preparers of governmental financial statements on (1) potential implementation difficulties, (2) the costs associated with the initial and ongoing implementation of the proposed standard, and (3) whether any provisions of the proposed standard are unclear. The feedback that you provide will be considered by the Board in development of a final Statement.
To access the GASB Exposure Draft, Certain Asset Retirement Obligations, click on the link below.
http://gasb.org/cs/ContentServer?c=Document_C&pagename=GASB%2FDocument_C%2FGASBDocumentPage&cid=1176167745160