Asset Retirement Obligation


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Asset Retirement Obligation

In accounting, a requirement that a long-term liability that must be retired in the future be recorded at its estimated, fair market value at the time of retirement instead of its value at the time the liability was acquired. This is codified in FASB No. 143.
References in periodicals archive ?
Seeing that the deliberations on these items are making steady progress towards convergence, the ASBJ and the IASB agreed to add three items as follows: asset retirement obligation, construction contracts, and disclosure of financial instruments at fair value.
In releasing the standard, FASB noted that because existing practice concerning accounting for all obligations associated with the removal of long-lived assets was inconsistent, SFAS 143 was written with the broader intent of covering all asset retirement obligations (ARO).
Specifically, the measurement of a liability for an asset retirement obligation should equal what a willing third party would require currently to assume the company's liability.
143, an entity must recognize an asset retirement obligation at its fair value the amount at which an informed willing party would agree to assume the obligation.
Marathon's Asset Retirement Obligation (ARO) rose to $1.
Also in 2010, the Company recorded accretion of discount related to its asset retirement obligation of $123,000.
30, 2010, Apache's Asset Retirement Obligation rose to $2.
At March 31, 2010, its Asset Retirement Obligation (ARO) was $1.
Also in 2009, the Company recorded accretion of discount related to its asset retirement obligation of $117,000.
2 million of our total recorded asset retirement obligation at September 30, 2009.
Other corporate and unallocated costs for the full year 2008 decreased from 2007 due to lower legal and legal related settlement costs and lower asset retirement obligation costs.
At year end 2007 Apache's asset retirement obligation (ARO) stood at $1.