Asset Retirement Obligations - PSAB; Mar 22, 2018. Practice exam 2015, Questions and answers Sample/practice exam 2015, questions and answers International - Business - Notes - Lecture notes, lecture 1 - 15 - All chapters covered from the textbook Lecture notes, lectures 1,2,4,5,6 Assignment 01-BIO 235 - Assighnment 1-BIO 235 - Human Anatomy and Physiology Lecture notes Chapter 1 - Human Anatomy and Physiology Preparing Personal Tax Returns (T1) Using CCH Tax Prep, Preparing Corporate Tax Returns (T2) Using CCH Tax Prep, Preparing Trust Returns (T3) Using CCH Tax Prep (Coming Soon), Preparing Partnership Returns (T5013) Using CCH Tax Prep (Coming Soon), Tax Planning: Purchase and Sale of an Owner-Managed Business, Protecting Your Clients and Your Professional Practice from Unexpected CRA Penalties, Death of a Taxpayer and Post Mortem Tax Planning, Taxation of Snowbirds: U.S. Tax for Canadian Tax Professionals, International Tax - Canadian Outbound Taxation, Foreign Affiliates, International Tax - Canadian Inbound Taxation for Non-Resident Corporations, International Tax - Completing Foreign Reporting Forms, See all our online tax courses and webinars, existing or enacted law, statute, ordinance or, by the doctrine of promissory estoppel (reliance on a promise is reasonable and foreseeable; and damage would result to the party promised if promise not enforced), The ARO must also meet the definition of a liability, they embody a duty to others that entails yielding of economic benefits, event obligating the entity has already occurred, Therefore, if the obligation is to clean up a site, the ARO is recorded as the contamination occurs, The amount recognized as an ARO shall be the, The amount entity would pay to settle the obligation at the balance sheet date, ARO is reviewed at each balance sheet and adjusted to reflect the current best estimate, When the liability for an ARO is recognized, increase the carrying amount of the related long-lived asset by the same amount (cr. Understanding ASPE Section 1521, Balance Sheet | 3 To learn more about these items or Introduction to Asset Retirement Obligation Asset Retirement Obligation is a legal and accounting requirement, in which a company needs to make provisions for the retirement of a tangible long-lived asset, to bring the asset back to its original condition after the business is done using the asset. An asset retirement obligation (ARO) is a legal obligation associated with the retirement of a tangible long-lived asset that an entity is required to settle as a result of an existing or enacted law, statute, ordinance or written or oral contract or (a) An asset retirement obligation represents a liability for the legal obligation associated with the retirement of a tangible, long-lived asset that a service company is required to settle as a result of an existing or enacted law, statute, ordinance, or written or oral contract, or by legal construction of a contract under the doctrine of promissory estoppel. major ASPE projects since the introduction of the accounting framework. The present value of dismantling the equipment on June 1, 2017 will be $1,648,890 (see Appendix 3a). (b) Prepare any journal entries required for the depot and the asset retirement obligation at December 31, 2011. This publication is designed to assist professionals in understanding the … Trusted And Used By: Contact Us: support@prepformula.com. recognition of costs associated with an asset retirement obligation on the adoption of IFRS 16 Leases. November 22, 2018 An asset retirement obligation (ARO) is a liability associated with the eventual retirement of a fixed asset. Similar to asset retirement obligation covered under ASPE 3110 Decommissioning/restoration is recognized as a Liability (per IAS 37 – provisions); and As part of Property, Plant and Equipment (IAS 16) The decision tree in the Appendix provides a summary of the recognition criteria under IFRS. Crude Oil uses straight-line depreciation. The majority of the Exposure Draft respondents supported this approach. (ex: If asset value is $100,000 and the obligation reduced by $150,000, would recognize a profit of $50,000 in the P&L. • apply the disclosure requirements for asset retirement obligations under ASPE Asset Retirement Obligations under ASPE Type e-learning Prerequisite knowledge Working knowledge of Part V Canadian GAAP Length 30 minutes Course number E-ASPE106e. Full Webinar + Note Package Provided. Assume a private enterprise adopts ASPE for the calendar year 2011. An asset retirement obligation (ARO) is a legal obligation that is associated with the retirement of a tangible, long-term asset. The obligation is recognized at the best estimate of the amount required to settle the obligation at the balance sheet date. Under IFRS, the increase in the carrying value of the decommissioning liability due to the passing of time is recorded as interest expense (borrowing cost), but under ASPE, this is not permitted. Courses. enterprises (“ASPE”) Section 1521, ... 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