Asked by Slaton Media on Jun 26, 2024
Verified
Historically,GAAP did not require firms to record asset retirement obligations.
Asset Retirement Obligations
Liabilities recognized for the future costs of disposing of an asset and restoring the site, typically relevant for companies with significant fixed assets.
GAAP
Commonly followed accounting rules and standards for financial reporting, referred to as Generally Accepted Accounting Principles.
- Comprehend the guidelines for the treatment of extraordinary items and the obligations related to asset retirement.
Verified Answer
KM
Komal mehboobJun 27, 2024
Final Answer :
True
Explanation :
Asset retirement obligations were not required to be recorded under GAAP until the implementation of FASB Statement No. 143 "Accounting for Asset Retirement Obligations" in 2002.
Learning Objectives
- Comprehend the guidelines for the treatment of extraordinary items and the obligations related to asset retirement.
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