1、Designation: E3123 17E3123 18Standard 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 r
2、evision. 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 a series of options or instructions consistent with good commercial andcustom
3、ary practice for recognition and derecognition of environmental liabilities. This guide is consistent with GenerallyAcceptedAccounting Principles (GAAP). Recognition of environmental liabilities is essential to determining the current book value of anentity. An entity may have future spending to ext
4、inguish risk and liabilities triggered in the past. Serious consequences, rangingfrom failed audits and poor capital stewardship to financial fraud and bankruptcy, exist for entities omitting material informationfrom financial statements.1.2 ObjectiveThis guide enables users to reliably determine if
5、 a given type of environmental liability exists and subsequentlyhas been settled, consistent with the accounting definitions in place.1.3 This international standard was developed in accordance with internationally recognized principles on standardizationestablished in the Decision on Principles for
6、 the Development of International Standards, Guides and Recommendations issuedby the World Trade Organization Technical Barriers to Trade (TBT) Committee.2. Referenced Documents2.1 ASTM Standards:2E2137 Guide for Estimating Monetary Costs and Liabilities for Environmental MattersE2173 Guide for Disc
7、losure of Environmental LiabilitiesE3033 Guide for Beneficial Use of Landfills and Chemically Impacted SitesGenerally Accepted Accounting Principles:2.2 FASB Financial Accounting Standards Board3Statement of Accounting Concepts No. 6 Elements of Financial StatementsStatement of Accounting Concepts N
8、o. 8 Conceptual Framework 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
9、fair value measurement2.3 GASB Government Accounting Standards Board:4Statement 10 accounting and financial reporting for risk financing and related insurance issuesStatement 18 landfill closure and postclosure care costsStatement 49 pollution remediation obligationsStatement 69 government combinati
10、ons and disposals of government operationsStatement 70 nonexchange financial guarantees1 This test method is under the jurisdiction of ASTM Committee E50 on Environmental Assessment, Risk Management and Corrective Action and is the directresponsibility of Subcommittee E50.05 on Environmental Risk Ma
11、nagement.Current edition approved Oct. 15, 2017Feb. 1, 2018. Published November 2017March 2018. Originally approved in 2017. last previous edition approved in 2017 asE312317. DOI: 10.1520/E3123-1710.1520/E3123-182 For referencedASTM standards, visit theASTM website, www.astm.org, or contactASTM Cust
12、omer Service at serviceastm.org. For Annual Book of ASTM Standardsvolume information, refer to the standards Document Summary page on the ASTM website.3 Available from Financial Accounting Standards Board 401 Merritt 7 P.O. Box 5116 Norwalk, Connecticut 06856-5116, http:/www.fasb.org4 Available from
13、 Governmental Accounting Standards Board, 401 Merritt 7 P.O. Box 5116 Norwalk, Connecticut 06856-5116 http:/www.gasb.org/This document is not an ASTM standard and is intended only to provide the user of an ASTM standard an indication of what changes have been made to the previous version. Becauseit
14、may not be technically possible to adequately depict all changes accurately, ASTM recommends that users consult prior editions as appropriate. In all cases only the current versionof the standard as published by ASTM is to be considered the official document.Copyright ASTM International, 100 Barr Ha
15、rbor Drive, PO Box C700, West Conshohocken, PA 19428-2959. United States1Statement 72 fair value measurement and applicationStatement 83 certain asset retirement obligations2.4 IASBInternational Accounting Standards Board:5IAS 37 provisions, contingent liabilities and contingent assetsIFRS 3 busines
16、s combinationsIFRS 13 fair value measurement3. Terminology3.1 Definitions: (italicization identifies defined terms.)3.1.1 acceptable usean environmental professionals description of a proposed beneficial use, characterized by the nature andduration of activities involved, for a property that is eval
17、uated and determined to be protective of human health, public safety, andwelfare with, if necessary, specified engineering and institutional controls and established signage.3.1.2 accounting frameworkthe accounting standards and principles relevant to an entitys function. As many issuers ofaccountin
18、g standards and principles exist worldwide, it is common for entities to observe the standards of several issuersconcurrently.3.1.3 accruala value placed on a recognized environmental liability. Accruals are adjusting entries to accounting records sothat the financial statements report these amounts
19、. This forms the basis of “accrual accounting” methods.3.1.4 accretionan increase to the present value of a liability solely due to the passage of time, normally a year; also knownas “unwinding the discount.”3.1.5 activity and use limitations, or AULlegal or physical restrictions or limitations on t
20、he use of, or access to, a site orfacility to eliminate or minimize potential exposures to chemicals of concern, or to prevent activities that could interfere with theeffectiveness of a response action, to ensure maintenance of a condition of “acceptable risk” or “no significant risk” to humanhealth
21、 and the environment. These legal or physical restrictions are intended to prevent adverse impacts to individuals orpopulations or environmental receptors that may be exposed to chemicals of concern.3.1.6 allocation or allocated sharethe portion of cost or liability for which a party is responsible
22、for payment orreimbursement.3.1.7 asset retirement obligation, AROlegal or constructive obligations associated with the retirement of a tangible long-livedasset that result from the acquisition, construction, development, or normal operation of a tangible long-lived asset. Activitiesinclude (but are
23、 not limited to) demolition, decommissioning, decontamination, reclamation, restoration and abandonment.3.1.8 claima demand for payment or performance of services.3.1.9 commitmentcontracts creating environmental risks, typically outside of regulatory oversight. For example, a leaserequirement to “re
24、turn a property to original condition at lease-end” may create duties beyond those obligations caused byenvironmental regulations.Another example is a cost-sharing agreement for environmental liabilities between a buyer and a seller,or between an insurer and their insured.3.1.10 componenta portion o
25、f a liability.3.1.11 contingencyan existing condition, situation or set of circumstances involving uncertainty as to possible gain or loss toan entity that will ultimately be resolved when one or more future events occur or fail to occur (ASC 450-20-20). Examples include(a) injury or damage caused b
26、y products sold; (b) risk of loss or damage of property by fire, explosion or other hazards; (c) actualor possible claims and assessments; (d) threat of expropriation of assets; and (e) pending or threatened litigation. (ASC450-30-05-10)3.1.12 constructive obligationthe concept that past practice or
27、 statement creates a valid expectation on the part of a third party.An example of this is a company policy to excavate underground storage tanks once removed from service. Also known aspromissory estoppel.3.1.13 costs and liabilitieseconomic expenses, accrued liabilities, asset retirement obligation
28、s, impairments, and losscontingencies.3.1.14 derecognizeremove previously recognized assets or liabilities from the statement of financial position.3.1.15 dutyholderentity responsible for the costs and liabilities.3.1.16 environmental liabilitiesa set of liabilities consisting of five types: asset r
29、etirement obligations, other environmentalobligations, commitments, contingencies and guarantees. Outside of a transaction, the ordinary value of these liabilities are theirprovisions (consisting of long-term and short-term portions). Within an actual or proposed transaction, environmental liabiliti
30、eshave “fair value measurement” (also “due diligence”) values.5 Available from International Accounting Standards Board, 30 Cannon Street London, EC4M 6XH United Kingdom http:/www.ifrs.orgE3123 1823.1.17 equitablea type of obligation based on moral or social expectations, which is typically not enfo
31、rceable. However, it isuncommon for an equitable obligation to lack a concurrent contractual, regulatory and/or constructive obligation(s).3.1.18 estimatoran individual or entity that prepares and analyzes costs and liabilities.3.1.19 eventa condition or incident which occurred, or may occur, with r
32、espect to an environmental condition and/orenvironmental compliance issue, that causes exposure to risks, and may result in liabilities.3.1.20 extinguishmentsettlement of environmental liabilities, normally through the performance of services or cash payments.Extinguishment through bankruptcy or cor
33、porate dissolution is uncommon. Extinguishment (or settlement) is the normal conditionfor derecognition.3.1.21 fair valuean estimate of the price that could be received for an asset or paid to settle a liability in a current transactionbetween marketplace participants that are unrelated, knowledgeab
34、le about factors relevant to the liability and the transaction, able,and willing to transact in the reference market for the liability. Sometimes interchangeably called “due diligence value”.Also, thisapproach implies a comprehensive and auditable expected value calculation.3.1.22 fines and penaltie
35、sa subtype of environmental liabilities defined primarily in ASC Topic 450 Contingencies; taxdeductibility of fines and penalties is typically a relevant factor in the value and materiality of an environmental liability.3.1.23 guaranteea type of environmental liabilities defined primarily in ASC Top
36、ic 460 Guarantees, the distinct value of apromise to perform or pay, in the event that another party does not. Under “joint and several liability”, a guarantee typically existsamong the PRPs at a Superfund site. The cost of a CERCLA financial assurance instrument, such as a letter of credit orperfor
37、mance bond, is a guarantee above and beyond the cost of the guaranteed work or payment itself.3.1.24 incurredIn GASB Statement 83 Certain Asset Retirement Obligations, part of a two-factor test that an assetretirement obligation exists; incurred is used in place of probable.3.1.25 legal obligationdu
38、ty to carry out what the law (regulation) or a contract states.3.1.26 liabilityIn FASB Concepts Statement No. 6, Elements of Financial Statements, “probable future sacrifices of economicbenefits arising from present obligations of a particular entity to transfer assets or provide services to other e
39、ntities in the futureas a result of past transactions or events.” Alternatively, a portion of an enterprises balance sheet containing long-term debt,short-term accounts payable, pensions and for the purpose of this guide, environmental liabilities. This includes legal obligationsas well as construct
40、ive obligations (promissory estoppel), and may also be in the form of commitments, contingencies orguarantees.3.1.27 long-tail liabilitya liability with a long settlement period. Environmental liabilities are a type of long-tail liability.3.1.28 materialitythe significance of an item to users of a f
41、inancial statement that considers all relevant and surroundingcircumstances. For this guide, materiality is essential in the recognition process, but is not a factor in the derecognition process.A material item is one that its omission or misstatement is of such a magnitude in the surrounding circum
42、stances that either thejudgment of a reasonable person relying on the financial statement would have been changed or influenced by its inclusion orcorrection, or there is a substantial likelihood that the item, after assessing the inferences, and their significance, drawn from thegiven set of facts
43、associated with the financial statement, would be viewed as significantly altering the information made availableto statements user. Relevant sources of information and references are included in Appendix X2.3.1.28.1 DiscussionThis definition is not intended to replace the definition of materiality
44、periodically issued by the SEC (See Appendix X2).3.1.29 noncontingentnot dependent on a future outcome.3.1.30 obligating eventa past outcome which confirmed an obligation.3.1.31 obligationa legally enforceable duty of several types: (a) contractual, (b) regulatory, (c) constructive (promissoryestopp
45、el), or rarely (d) equitable.3.1.32 other environmental obligationin contrast to an asset retirement obligation to remove an asset from service, otherenvironmental obligations include “environmental remediation liabilities”, “pollution remediation obligation”, “Superfund cleanupcosts, “spill respons
46、e costs” and others (see ASC 410-30).3.1.33 present obligationan existing duty to achieve an outcome; whether enforced or not, conditions already exist forenforcement.3.1.34 probable (ASC 410-20)one part of a two-factor test for liability recognition in FASBASC 410-20, meaning that whichcan be reaso
47、nably expected or believed on the basis of available evidence or logic but is neither certain nor proved.3.1.35 probable(Merriam Webster definitions): Supported by evidence strong enough to establish presumption but not proof Establishing a probabilityE3123 183 Likely to be or become true or real3.1
48、.36 probable (ASC 450-20 and by reference ASC 410-30)one part of a two-factor test for liability recognition in FASBASC450, meaning likely to occur. This has commonly been (but not authoritatively) interpreted to mean more than 75 or 80 percentlikely to occur (see 5.2.3 for further information).3.1.
49、37 probable (IAS 37)one part of a three-factor test for liability recognition in IAS 37, meaning that which is more likelythan 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 adjustmentthe process by which assets and liabilities are adjusted to fair value, promptly after anacquisition. For environmental liabilities, this commonly results in corrections based on significant findi
