![]() ![]() Reason why an estimate of a probable or reasonably possible loss or range of loss cannot be made, if applicable.Estimated time frame for resolution of the uncertainty.Expected period for realization of recognized probable recoveries.Period over which disbursements for recorded amounts will occur.Additional specific disclosures related to the environmental remediation loss contingencies that would be useful to further a user’s understanding of the reporting entity’s financial statements.Policy concerning the timing of recognition of recoveries.The event, situation, or circumstances that might trigger recognition of a loss contingency related to a reporting entity’s remediation-related obligations (e.g., upon completion of a feasibility study).Discontinued operations A reporting entity should classify environmental remediation expenses and recoveries as discontinued operations if they meet the requirements in ASC 205-20, Discontinued Operations.ĪSC 410-30-50-8 through ASC 410-30-50-12 outlines the following disclosures that a reporting entity should consider, but that are not required.To the extent a reporting entity has earmarked assets for funding its environmental liabilities, the earnings on those assets should be reported as investment income. Any recoveries should be reflected in the same income statement line as the original expense. Operating expense classification As discussed in ASC 410-30-45-4, environmental remediation costs are required to be charged against operations since the events underlying the incurrence of the obligation relate to the reporting entity's operations.However, as discussed in ASC 410-30-45-2, the FASB observed that it would be rare, if ever, that all of the conditions would be met for environmental remediation liabilities, the related insurance, and potential third-party recoveries. Right of setoff If all conditions in ASC 210, Balance Sheet, are met, assets and liabilities related to environmental remediation activities may be reported net.Balance sheet classification Where a classified balance sheet is presented, a reporting entity should present separately the current and noncurrent portions of the environmental remediation liability recorded, based on the expected timing of settlement.The guidance details the following points: Transfers and servicing of financial assetsĪSC 410-30-45-1 through ASC 410-30-45-6 details other presentation matters related to accrued liabilities and assets related to environmental remediation obligations. Revenue from contracts with customers (ASC 606) Loans and investments (post ASU 2016-13 and ASC 326) Investments in debt and equity securities (pre ASU 2016-13) Insurance contracts for insurance entities (pre ASU 2018-12) Insurance contracts for insurance entities (post ASU 2018-12) IFRS and US GAAP: Similarities and differences Business combinations and noncontrolling interestsĮquity method investments and joint ventures ![]()
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