Asset retirement obligation

Significant costs associated with the disposal of asset. Accounting for asset retirement obligations requires estimating the cost and discounting estimate. The present value added to the asset's depreciable base and a liability is recorded for the obligation. Every year, interest expense is added to the liability so that when the asset is retired the value in the liability is equal to the cost estimate

View Complete Question

Related Questions in Managerial Accounting

Q : Management accounting and financial

What does the difference between management accounting and financial accounting suggest?

Q : Basic accounting principles or concepts

ACCOUNTING CONCEPTS: Presented below are basic accounting principles or concepts, with which hospital managers should be familiar and that they should understand i

Q : Fundamentals of Accounting Assignment

Assignment 1: A adjusted Trial balance table given below: Southwest Business School

Q : Define Differential Cost Differential

Differential Cost: The cost difference predicted when one course of action is adopted rather than others.

Q : Threats to business comprises Write a

Write a brief note on the things which Threats to business comprises?

Q : What is Incremental Cost Incremental

Incremental Cost: The raise or reduction in total costs which would result from a decision to raise or reduce output level, to add a service or task, or to modify any part of operations. This information aids in making decisions such

Q : What is Partnership Partnership :

Partnership: Whenever two or more persons enter into an agreement to take on business and share its gain and losses, it is a condition of partnership. It can also define as: "Partnership is the relation among persons and who have granted to share the

Q : Explain Responsibility Segment

Responsibility Segment: A noteworthy organizational, functional, operational, or process component that has the characteristics as: (i) Its manager reports to the entity's top management;

Q : What is Job Order Costing Job Order

Job Order Costing: A technique of cost accounting which accrued costs for individual jobs or lots. A job might be a service or manufactured item, like the repair of tools or the treatment of a patient in the hospital.

Q : Planned product cost and the actual cost

A company has production facilities in several countries. Some of the products they sell are produced in stages (Raw Materials -> Pre-Assembly -> Assembly -> Finished Product) based on the technologies and materials involved (see Table 1).

Discover Q & A

Leading Solution Library

Avail More Than 1449982 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1956243
Asked

3,689

Active Tutors

1449982

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment