logo
Ask Question

Asked by Chasity Martin on May 21, 2024

verifed

Verified

Firms facing asset retirement obligations must report these obligations only in the notes to their financial statements.

Asset Retirement Obligations

Legal obligations associated with the retirement of a tangible, long-lived asset that result from its acquisition, construction, development, or normal operations.

Financial Statements

Written records that convey the business activities and the financial performance of a company, typically including the income statement, balance sheet, and statement of cash flows.

  • Differentiate between physical and non-physical assets and their respective methods of accounting.
verifed

Verified Answer

KJ
Kanwal JamalMay 25, 2024
Final Answer :
False
Explanation :
Firms facing asset retirement obligations must report these obligations on their balance sheet as a liability in accordance with accounting standards (such as ASC 410 or IAS 37). They may also disclose additional information about the nature and timing of these obligations in the notes to their financial statements.

Related questions

Market Forces Lead to Commonalities That Usually Make Comparisons Across ...

When an Asset Retirement Obligation Is Established,the Offsetting Debit Goes ...

Intangible Assets Are Long-Lived Assets That Do Not Have Physical ...

Minerals Removed from the Earth Are Classified as Intangible Assets

The Cost of a Patent with a Remaining Legal Life ...