1、Designation: E3123 17Standard Guide forRecognition and Derecognition of Environmental Liabilities1This standard is issued under the fixed designation E3123; the number immediately following the designation indicates the year oforiginal adoption or, in the case of revision, the year of last revision.
2、 A number in parentheses indicates the year of last reapproval. Asuperscript epsilon () indicates an editorial change since the last revision or reapproval.1. Scope1.1 PurposeThe purpose of this guide is to provide aseries of options or instructions consistent with good commer-cial and customary pra
3、ctice for recognition and derecognitionof environmental liabilities. This guide is consistent withGenerally Accepted Accounting Principles (GAAP). Recogni-tion of environmental liabilities is essential to determining thecurrent book value of an entity. An entity may have futurespending to extinguish
4、 risk and liabilities triggered in the past.Serious consequences, ranging from failed audits and poorcapital stewardship to financial fraud and bankruptcy, exist forentities omitting material information from financial state-ments.1.2 ObjectiveThis guide enables users to reliably deter-mine if a giv
5、en type of environmental liability exists andsubsequently has been settled, consistent with the accountingdefinitions in place.1.3 This international standard was developed in accor-dance with internationally recognized principles on standard-ization established in the Decision on Principles for the
6、Development of International Standards, Guides and Recom-mendations issued by the World Trade Organization TechnicalBarriers to Trade (TBT) Committee.2. Referenced Documents2.1 ASTM Standards:2E2137 Guide for Estimating Monetary Costs and Liabilitiesfor Environmental MattersE2173 Guide for Disclosur
7、e of Environmental LiabilitiesE3033 Guide for Beneficial Use of Landfills and ChemicallyImpacted SitesGenerally Accepted Accounting Principles:2.2 FASB Financial Accounting Standards Board3Statement ofAccounting Concepts No. 6 Elements of Finan-cial StatementsStatement ofAccounting Concepts No. 8 Co
8、nceptual Frame-work for Financial ReportingASC Topic 410-20 asset retirement obligationsASC Topic 410-30 other environmental obligationsASC Topic 420 exit/disposal costsASC Topic 440 commitmentsASC Topic 450 contingenciesASC Topic 460 guaranteesASC Topic 805 business combinationsASC Topic 820 fair v
9、alue measurement2.3 GASB Government Accounting Standards Board:4Statement 10 accounting and financial reporting for riskfinancing and related insurance issuesStatement 18 landfill closure and postclosure care costsStatement 49 pollution remediation obligationsStatement 69 government combinations and
10、 disposals ofgovernment operationsStatement 70 nonexchange financial guaranteesStatement 72 fair value measurement and applicationStatement 83 certain asset retirement obligations2.4 IASBInternational Accounting Standards Board:5IAS 37 provisions, contingent liabilities and contingentassetsIFRS 3 bu
11、siness combinationsIFRS 13 fair value measurement3. Terminology3.1 Definitions: (italicization identifies defined terms.)3.1.1 acceptable usean environmental professionals de-scription of a proposed beneficial use, characterized by thenature and duration of activities involved, for a property that i
12、sevaluated and determined to be protective of human health,public safety, and welfare with, if necessary, specified engi-neering and institutional controls and established signage.1This test method is under the jurisdiction of ASTM Committee E50 onEnvironmental Assessment, Risk Management and Correc
13、tive Action and is thedirect responsibility of Subcommittee E50.05 on Environmental Risk Management.Current edition approved Oct. 15, 2017. Published November 2017. DOI:10.1520/E3123-172For referenced ASTM standards, visit the ASTM website, www.astm.org, orcontact ASTM Customer Service at serviceast
14、m.org. For Annual Book of ASTMStandards volume information, refer to the standards Document Summary page onthe ASTM website.3Available from Financial Accounting Standards Board 401 Merritt 7 P.O. Box5116 Norwalk, Connecticut 06856-5116, http:/www.fasb.org4Available from Governmental Accounting Stand
15、ards Board, 401 Merritt 7 P.O.Box 5116 Norwalk, Connecticut 06856-5116 http:/www.gasb.org/5Available from International Accounting Standards Board, 30 Cannon StreetLondon, EC4M 6XH United Kingdom http:/www.ifrs.orgCopyright ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, P
16、A 19428-2959. United StatesThis international standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles for theDevelopment of International Standards, Guides and Recommendations issued by the World Trade Organization
17、Technical Barriers to Trade (TBT) Committee.13.1.2 accounting frameworkthe accounting standards andprinciples relevant to an entitys function. As many issuers ofaccounting standards and principles exist worldwide, it iscommon for entities to observe the standards of several issuersconcurrently.3.1.3
18、 accruala value placed on a recognized environmen-tal liability. Accruals are adjusting entries to accounting re-cords so that the financial statements report these amounts.This forms the basis of “accrual accounting” methods.3.1.4 accretionan increase to the present value of aliability solely due t
19、o the passage of time, normally a year; alsoknown as “unwinding the discount.”3.1.5 activity and use limitations, or AULlegal or physicalrestrictions or limitations on the use of, or access to, a site orfacility to eliminate or minimize potential exposures to chemi-cals of concern, or to prevent act
20、ivities that could interfere withthe effectiveness of a response action, to ensure maintenance ofa condition of “acceptable risk” or “no significant risk” tohuman health and the environment. These legal or physicalrestrictions are intended to prevent adverse impacts to indi-viduals or populations or
21、 environmental receptors that may beexposed to chemicals of concern.3.1.6 allocation or allocated sharethe portion of cost orliability for which a party is responsible for payment orreimbursement.3.1.7 asset retirement obligation, AROlegal or construc-tive obligations associated with the retirement
22、of a tangiblelong-lived asset that result from the acquisition, construction,development, or normal operation of a tangible long-livedasset. Activities include (but are not limited to) demolition,decommissioning, decontamination, reclamation, restorationand abandonment.3.1.8 claima demand for paymen
23、t or performance ofservices.3.1.9 commitmentcontracts creating environmental risks,typically outside of regulatory oversight. For example, a leaserequirement to “return a property to original condition atlease-end” may create duties beyond those obligations causedby environmental regulations. Anothe
24、r example is a cost-sharing agreement for environmental liabilities between abuyer and a seller, or between an insurer and their insured.3.1.10 componenta portion of a liability.3.1.11 contingencyan existing condition, situation or setof circumstances involving uncertainty as to possible gain orloss
25、 to an entity that will ultimately be resolved when one ormore future events occur or fail to occur (ASC 450-20-20).Examples include (a) injury or damage caused by productssold; (b) risk of loss or damage of property by fire, explosionor other hazards; (c) actual or possible claims and assessments;(
26、d) threat of expropriation of assets; and (e) pending orthreatened litigation. (ASC 450-30-05-10)3.1.12 constructive obligationthe concept that past prac-tice or statement creates a valid expectation on the part of athird party.An example of this is a company policy to excavateunderground storage ta
27、nks once removed from service. Alsoknown as promissory estoppel.3.1.13 costs and liabilitieseconomic expenses, accruedliabilities, asset retirement obligations, impairments, and losscontingencies.3.1.14 derecognizeremove previously recognized assetsor liabilities from the statement of financial posi
28、tion.3.1.15 dutyholderentity responsible for the costs and li-abilities.3.1.16 environmental liabilitiesa set of liabilities consist-ing of five types: asset retirement obligations, other environ-mental obligations, commitments, contingencies and guaran-tees. Outside of a transaction, the ordinary v
29、alue of theseliabilities are their provisions (consisting of long-term andshort-term portions). Within an actual or proposed transaction,environmental liabilities have “fair value measurement” (also“due diligence”) values.3.1.17 equitablea type of obligation based on moral orsocial expectations, whi
30、ch is typically not enforceable.However, it is uncommon for an equitable obligation to lack aconcurrent contractual, regulatory and/or constructive obliga-tion(s).3.1.18 estimatoran individual or entity that prepares andanalyzes costs and liabilities.3.1.19 eventa condition or incident which occurre
31、d, ormay occur, with respect to an environmental condition and/orenvironmental compliance issue, that causes exposure to risks,and may result in liabilities.3.1.20 extinguishmentsettlement of environmentalliabilities, normally through the performance of services orcash payments. Extinguishment throu
32、gh bankruptcy or corpo-rate dissolution is uncommon. Extinguishment (or settlement)is the normal condition for derecognition.3.1.21 fair valuean estimate of the price that could bereceived for an asset or paid to settle a liability in a currenttransaction between marketplace participants that areunr
33、elated, knowledgeable about factors relevant to the liabilityand the transaction, able, and willing to transact in thereference market for the liability. Sometimes interchangeablycalled “due diligence value”. Also, this approach implies acomprehensive and auditable expected value calculation.3.1.22
34、fines and penaltiesa subtype of environmentalliabilities defined primarily in ASC Topic 450 Contingencies;tax deductibility of fines and penalties is typically a relevantfactor in the value and materiality of an environmental liability.3.1.23 guaranteea type of environmental liabilities de-fined pri
35、marily inASC Topic 460 Guarantees, the distinct valueof a promise to perform or pay, in the event that another partydoes not. Under “joint and several liability”, a guaranteetypically exists among the PRPs at a Superfund site. The costof a CERCLA financial assurance instrument, such as a letterof cr
36、edit or performance bond, is a guarantee above andbeyond the cost of the guaranteed work or payment itself.3.1.24 incurredIn GASB Statement 83 Certain AssetRetirement Obligations, part of a two-factor test that an assetretirement obligation exists; incurred is used in place ofprobable.E3123 1723.1.2
37、5 legal obligationduty to carry out what the law(regulation) or a contract states.3.1.26 liabilityIn FASB Concepts Statement No. 6, Ele-ments of Financial Statements, “probable future sacrifices ofeconomic benefits arising from present obligations of a par-ticular entity to transfer assets or provid
38、e services to otherentities in the future as a result of past transactions or events.”Alternatively, a portion of an enterprises balance sheet con-taining long-term debt, short-term accounts payable, pensionsand for the purpose of this guide, environmental liabilities.This includes legal obligations
39、 as well as constructive obliga-tions (promissory estoppel), and may also be in the form ofcommitments, contingencies or guarantees.3.1.27 long-tail liabilitya liability with a long settlementperiod. Environmental liabilities are a type of long-tail liability.3.1.28 materialitythe significance of an
40、 item to users of afinancial statement that considers all relevant and surroundingcircumstances. For this guide, materiality is essential in therecognition process, but is not a factor in the derecognitionprocess. A material item is one that its omission or misstate-ment is of such a magnitude in th
41、e surrounding circumstancesthat either the judgment of a reasonable person relying on thefinancial statement would have been changed or influenced byits inclusion or correction, or there is a substantial likelihoodthat the item, after assessing the inferences, and theirsignificance, drawn from the g
42、iven set of facts associated withthe financial statement, would be viewed as significantlyaltering the information made available to statements user.Relevant sources of information and references are included inAppendix X2.3.1.28.1 DiscussionThis definition is not intended to re-place the definition
43、 of materiality periodically issued by theSEC (See Appendix X2).3.1.29 noncontingentnot dependent on a future outcome.3.1.30 obligating eventa past outcome which confirmedan obligation.3.1.31 obligationa legally enforceable duty of severaltypes: (a) contractual, (b) regulatory, (c) constructive (pro
44、mis-sory estoppel), or rarely (d) equitable.3.1.32 other environmental obligationin contrast to anasset retirement obligation to remove an asset from service,other environmental obligations include “environmental reme-diation liabilities”, “pollution remediation obligation”, “Super-fund cleanup cost
45、s, “spill response costs” and others (see ASC410-30).3.1.33 present obligationan existing duty to achieve anoutcome; whether enforced or not, conditions already exist forenforcement.3.1.34 probable (ASC 410-20)one part of a two-factor testfor liability recognition in FASB ASC 410-20, meaning thatwhi
46、ch can be reasonably expected or believed on the basis ofavailable evidence or logic but is neither certain nor proved.3.1.35 probable(Merriam Webster definitions): Supported by evidence strong enough to establish pre-sumption but not proof Establishing a probability Likely to be or become true or r
47、eal3.1.36 probable (ASC 450-20 and by reference ASC 410-30)one part of a two-factor test for liability recognition inFASB ASC 450, meaning likely to occur. This has commonlybeen (but not authoritatively) interpreted to mean more than 75or 80 percent likely to occur (see 5.2.3 for further information
48、).3.1.37 probable (IAS 37)one part of a three-factor test forliability recognition in IAS 37, meaning that which is morelikely than not (that is, more than 50% likely).3.1.38 provision (IAS 37)an accrual or accrued liability,sometimes of uncertain timing or amount3.1.39 purchase accounting adjustmen
49、tthe process bywhich assets and liabilities are adjusted to fair value, promptlyafter an acquisition. For environmental liabilities, this com-monly results in corrections based on significant findings anddecisions learned after the due diligence process and transac-tion negotiations.3.1.40 reasonably estimableone part of a two-factor testfor liability recognition in FASB ASC 410 and 450, GASBStatements 10, 18, 49 and 83, intended to prevent the accrualin the financial statements of amounts so
