How is an asset retirement obligation recorded in the financial statements?
ARO’s are a legal obligation associated with the retirement of a tangible long-lived asset in which the timing or method of settlement may be conditional on a future event, the occurrence of which may not be within the control of the entity burdened by the obligation. ARO’s are typically recorded as a non-current liability unless the company expects they will have to settle the ARO within the next 12 months.
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You might also be interested in... What is an ARO?
For accounting and financial purposes, ARO stands for “asset retirement obligation”. ARO’s are a legal obligation associated with the retirement of a tangible long-lived asset in which the timing or method of settlement may be conditional on a future event, the occurrence of which may not be within the control of the entity burdened by...
What is an ARO?
For accounting and financial purposes, ARO stands for “asset retirement obligation”. ARO’s are a legal obligation associated with the retirement of a tangible long-lived asset in which the timing or method of settlement may be conditional on a future event, the occurrence of which may not be within the control of the entity burdened by...
