Does PS 3280 require an Asset Retirement Obligation to be recorded even when the asset is no longer in use?

Does PS 3280 require an Asset Retirement Obligation to be recorded even when the asset is no longer in use? Does PS 3280 require an Asset Retirement Obligation to be recorded even when the asset is no longer in use?

1 Expert Answer

Umar Saeed

MAcc, CPA, CA, Partner,  Welch LLP

Most AROs under the standard will refer to obligations that are related to assets that are currently in productive use by the public sector entity. However, if an asset that is no longer in productive use legally requires costs to be incurred to retire or dispose of the asset, this liability must be recorded under PSAB's new standard as an expense.

Answers by Welch LLP

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