Asset Retirement Obligation Flashcards
1
Q
What is the obligation associated with the retirement of a tangible long-lived asset?
A
Asset Retirement Obligation
2
Q
What is the amount capitalized (asset) that increases the carrying amount of the long-lived asset when a liability for an ARO is recognized?
A
Asset Retirement Cost
3
Q
JE to record the Asset Retirement Cost?
A
Dr. Asset retirement cost and Cr. Asset retirement obligation
4
Q
How are asset retirement cost and obligation recorded at?
A
Present value
5
Q
What amount is the asset retirement obligation recorded as?
A
Discounted amount
6
Q
What does cumulative accretion expense + cumulative depreciation =?
A
Asset retirement obligation
