The Pennsylvania State Association of Boroughs (PSAB) is a statewide, non-partisan, non-profit organization dedicated to serving 956 borough governments. How to adopt construction technology in a smart and minimally disruptive way. Government and Government Organizations • Revenue, Section PS 3400: November 21, 2018: 2018-19 Annual Plan. Fair value of a contributed tangible capital asset may be estimated using market or appraisal values. Message from the PSAB Chair – January 2017. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox. Asset Retirement Obligations. Examples of what’s in: • Removal of Asbestos • Retirement of x-ray machines • Boilers • Leased site restoration • Landfill closure / post-closure Release of the Asset Retirement Obligation section and the new Revenues section. Discover why Brazil’s tax law’s alignment with OECD guidelines is a matter of when not if. The project will address the reporting of legal obligations associated with the retirement of long-lived tangible capital assets currently in productive use. The opinions stated in the presentation are those of the author and do not necessarily reflect the views of PSAB. PS3280 Asset Retirement Obligations In August 2018, PSAB issued the new standard PS3280 on asset retirement obligations. Read our status update o…, Learn more about manufacturers’ views and concerns from the latest BDO-sponsored CME Management Issues survey:…, Acting as an exclusive financial advisor to @, Financial benchmarking can help identify areas to improve for your farm. PSAB Alert Page 1 application of this material. In unusual circumstances, where an estimate of fair value cannot be made, the tangible capital asset would be recognized at nominal value. The project is expected to commence in 2012. About PSAB. The standard must be applied by all public sector entities who prepare their financial statements under PSAB, including all Canadian municipalities. It was a logical progression for PSAB to consider whether standards were required for Asset Retirement Obligations (“AROs”). accounting for asset retirement obligations other relevant reporting issues public sector accounting board (PSAB) standard-setting activities and the potential impact on financial reporting by First Nations Helping real estate and construction companies thrive in every economic environment. At its meeting on September 26-27, 2016, the PSAB considered guidance to be included in an exposure draft to address various issues raised by respondents to the August 2014 Statement of Principles, “Retirement Obligations.” PSAB expects to review an exposure draft at its December 2016 meeting. Please read our. Jan 27, 2017. Strategies and support for a continuously evolving marketplace. Subject AccountingLink. Exposure Draft – Asset Retirement Obligations, Proposed Section PS 3280. Is your municipality ready to meet the requirements of this new standard for fiscal years beginning on or after April 1, 2021? Mar 09, 2017. These words serve as exceptions. Given this standard is closely tied to Section PS 3280, Asset Retirement Obligations, the Board decided not to carry out a post-implementation review of Section PS 3260 at this time. Visit: https://www.farhatlectures.com To access resources such as quizzes, power-point slides, CPA exam questions, and CPA simulations. It's official - PSAB approved the final Handbook Section PS 3280, Asset Retirement Obligations late March 2018. The PSADG covered a number of topics earlier in June, including a Consultation Paper and two Statements of Principles issued for comment by the PSAB, and more. Providing clients with the tailored guidance and resources they need to compete domestically and internationally. The standard must be applied by all public sector entities who prepare their financial statements under PSAB, including all Canadian municipalities. An asset retirement obligation (ARO) initially should be measured at fair value and should be recognized at the time the obligation is incurred (provided that a reasonable estimate of fair value can be made). (PSAB) – Update. By using this site you agree to our use of cookies. Note: An asset retirement obligation can apply to an asset that is in productive use or not in productive use. dismantling of a TCA). As well, it sets out significant matters arising from Standard-Setting in Canada. As of April 1, 2021, the new Public Sector Accounting Standard, PS 3280 goes into effect. Accounting for Conditional Asset Retirement Obligations - an interpretation of FASB Statement No. PSAB Alert: Release of PS 3280 Asset Retirement Obligations This communication contains a general overview of the topic and is current as of June 25, 2020. ASSET RETIREMENT OBLIGATIONS (ARO): A PRACTICAL APPROACH TO SECTION PS 3280 Section PS 3280, Asset Retirement Obligations, was issued by the Public Sector Accounting Standards Board (PSAB or the “Board”) August 2018. Navigating the Challenges in Professional Services. Explanation. Asset Retirement Obligations – Basis for Conclusions and new standard. Aug 01, 2018. - The Public Sector Accounting Board (PSAB) asset retirement obligation section will have a significant impact on the public sector. Earlier adoption is permitted. On March 9, 2017, the PSAB issued an Exposure Draft that proposes a new standard PS 3280 on asset retirement obligations. Obtaining early understanding of this standard’s effects is important, as the impact on some public sector entities may be significant. Asset Retirement Obligations - PSAB’s exposure draft on ARO’s closed for comment June 15, 2017. ACCOUNTING .06 Governments need to present information about the complete stock of their tangible capital assets and amortization in the summary financial statements to demonstrate stewardship and the cost of using those assets to deliver programs and provide services. Examples of asset retirement obligations Items that would not be asset retirement obligations Infrastructure assets, such as roads and bridges, are usually never removed from service and therefore would not typically have asset retirement obligations associated with them. The PSA Handbook is the primary authoritative source ... • Asset Retirement Obligations, Section PS 3280 April 1, 2022. The main features of the new Section are: This Section applies to fiscal years beginning on or after April 1, 2021. asset, other than land, is finite, and is normally the shortest of the physical, technological, commercial and legal life. PSAB's New ARO Standard - A Deep Dive. Asset retirement costs associated with a tangible capital asset controlled by the entity increase the carrying amount of the related tangible capital asset (or a component thereof) and are expensed in a rational and systematic manner. Stakeholders are encouraged to submit their comments by June 15, 2017. Asset retirement obligation involves the retirement of a long-lived asset that depends on a future event beyond the control of an obligated party. PS 3280 Asset Retirement Obligations (cont’d) Determining which standard should be applied Section PS 3280 Section PS 3260 Cause for the retirement or remediation obligation • Acquisition, construction, development, normal use. editorial changes have been made to other standards; and. At its meeting on December 14-15, 2017, the PSAB reviewed the comments received on its Exposure Draft and gave feedback to the staff in this regard. PSAB requested further analysis and examples from the task force. PSAB at a Glance Topic Standards Included in Topic Page ... Retirement Benefits, Post-employment Benefits, ... Asset Retirement Obligations Section PS 3280 40 Contingent Liabilities Section PS 3300 42 Loan Guarantees Section PS 3310 43 Contingent Assets Section PS … SAP Asset Retirement Obligation Management is an application that allows companies to manage their asset retirement obligations (AROs) from an accounting point of view. The primary objective of a Basis for Conclusions document is to set out how the Public Sector Accounting Board (PSAB) reached its conclusions. On August 1, 2018, the PSAB issued the new standard, Section PS 3280, "Asset Retirement Obligations". Ear­lier adop­tion is per­mit­ted. Asset Retirement Obligations (ARO): A Practical Approach to Section PS 3280 July 01, 2020 Section PS 3280, Asset Retirement Obligations, was issued by the Public Sector Accounting Standards Board (PSAB or the “Board”) August 2018. At its meeting on March 22-23, 2018, the PSAB approved the final Handbook Section PS 3280, "Asset Retirement Obligations". Does your entity control tangible capital assets requiring retirement? Michael A. Puskaric, Director. An Asset Retirement Obligation (ARO) is a legal obligation associated with the retirement of a tangible long-lived asset in which the timing or method of settlement may be conditional on a future event, the occurrence of which may not be within the control of the entity burdened by the obligation. Official positions of PSAB are established only after extensive public due process. BDO guides consumer businesses as they navigate the complexities of a rapidly evolving marketplace. This section addresses the reporting of legal obligations associated with the retirement of certain tangible capital assets and solid waste landfill sites by public sector entities. Disruptive way to identify and account for any assets that are in productive use 956. 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