In the US two key accounting rules, "FAS 5-Accounting for Contingencies" and "FIN 14-Reasonable Estimation of Loss," provide appropriate disclosures about their environmental liabilities.

Question

Quizplus · Accepted Answer

FAS 5 and FIN 14 are not the correct references for environmental liabilities. The relevant guidance is ASC 450, which deals with accounting for contingencies, including environmental liabilities.

In the US Two Key Accounting Rules, "FAS 5-Accounting for Contingencies