Asset retirement obligations are similar to must be recognized under which of the following circumstances:
A) When the facility is constructed.
B) When a contamination event occurs.
C) When new laws require unanticipated dismantling costs
D) All of the above.

Question

Quizplus · Accepted Answer

Asset retirement obligations must be recognized when an obligation associated with the retirement of a tangible long-lived asset is incurred. This can happen in various circumstances, such as when the facility is constructed (implying a future obligation to dismantle or remove the facility), when a contamination event occurs (requiring cleanup or other retirement activities), or when new laws impose unanticipated dismantling or retirement costs.

Asset Retirement Obligations Are Similar to Must Be Recognized Under