Section 855-25-2 Assignment Of Environmental Remediation
References
410-30-25
> Overall Approach
25-1 Paragraph 450-20-25-2 requires the accrual of a liability if both of the following conditions are met:
a. Information available before the financial statements are issued or are available to be issued (as discussed in Section 855-10-25) indicates that it is probable that an asset has been impaired or a liability has been incurred at the date of the financial statements.
b. The amount of the loss can be reasonably estimated.
25-2 An entity's environmental remediation obligation that results in a liability generally does not become determinable as a distinct event, nor is the amount of the liability generally fixed and determinable at a specific point in time. Rather, the existence of a liability for environmental remediation costs becomes …show more content…
Litigation has commenced or a claim or an assessment has been asserted, or commencement of litigation or assertion of a claim or assessment is probable.
b. The reporting entity is associated with the site—that is, it in fact arranged for the disposalof hazardous substances found at a site or transported hazardous substances to the site or is the current or previous owner or operator of the site.
> Ability to Reasonably Estimate the Liability
25-7 Estimating environmental remediation liabilities involves an array of issues at any point in time. In the early stages of the process, cost estimates can be difficult to derive because of uncertainties about a variety of factors. For this reason, estimates developed in the early stages of remediation can vary significantly; in many cases, early estimates later require significant revision. The following are some of the factors that are integral to developing cost
410-30-25
> Overall Approach
25-1 Paragraph 450-20-25-2 requires the accrual of a liability if both of the following conditions are met:
a. Information available before the financial statements are issued or are available to be issued (as discussed in Section 855-10-25) indicates that it is probable that an asset has been impaired or a liability has been incurred at the date of the financial statements.
b. The amount of the loss can be reasonably estimated.
25-2 An entity's environmental remediation obligation that results in a liability generally does not become determinable as a distinct event, nor is the amount of the liability generally fixed and determinable at a specific point in time. Rather, the existence of a liability for environmental remediation costs becomes …show more content…
Litigation has commenced or a claim or an assessment has been asserted, or commencement of litigation or assertion of a claim or assessment is probable.
b. The reporting entity is associated with the site—that is, it in fact arranged for the disposalof hazardous substances found at a site or transported hazardous substances to the site or is the current or previous owner or operator of the site.
> Ability to Reasonably Estimate the Liability
25-7 Estimating environmental remediation liabilities involves an array of issues at any point in time. In the early stages of the process, cost estimates can be difficult to derive because of uncertainties about a variety of factors. For this reason, estimates developed in the early stages of remediation can vary significantly; in many cases, early estimates later require significant revision. The following are some of the factors that are integral to developing cost