ASTM_E_2173_-_07_2011.pdf

Designation:E217307(Reapproved 2011)Standard Guide forDisclosure of Environmental Liabilities1This standard is issued under the fixed designation E2173;the number immediately following the designation indicates the year oforiginal adoption or,in the case of revision,the year of last revision.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 practice in the United States for environ-mental liability disclosures accompanying audited and unau-dited financial statements.This guide is consistent withGenerally Accepted Accounting Principles(GAAP).21.2 ObjectivesThe objectives of this guide are to deter-mine the conditions warranting disclosure and the content ofappropriate disclosure.2.Referenced Documents2.1 ASTM Standards:3D5746 Classification of Environmental Condition of Prop-erty Area Types for Defense Base Closure and Realign-ment FacilitiesE1527 Practice for Environmental SiteAssessments:Phase IEnvironmental Site Assessment ProcessE1739 Guide for Risk-Based Corrective Action Applied atPetroleum Release SitesE2137 Guide for Estimating Monetary Costs and Liabilitiesfor Environmental Matters2.2 EPA Directives:4United States Environmental Protection Agency,OSWERDirective 9610.17:Use of Risk-Based Decision-Makingin UST Corrective Action Programs3.Terminology3.1 Definitions of Terms Specific to This Standard:3.1.1 activity and use limitations(AULs)legal 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 activities 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 that may be exposed to chemicals ofconcern.3.1.2 asset retirement obligationlegal obligations associ-ated with the retirement of a tangible long-lived asset thatresult from the acquisition,construction,development,ornormal operation of a tangible long-lived asset.3.1.3 CERCLISComprehensive Environmental Response,Compensation and Liability Information System,the list ofsites compiled by the EPA that the EPA has investigated or iscurrently investigating for potential hazardous substance con-tamination for possible inclusion on the National PrioritiesList.3.1.4 claima demand for payment.3.1.5 current government environmental record sourceany environmental record source available from a governmentor commercial entity,provided the record is updated inaccordance with the update requirement of Practice E1527.3.1.6 engineering controls(EC)physical modifications toa site or facility(for example,capping,slurry walls,or point ofuse water treatment)to reduce or eliminate the potential forexposure to hazardous substances or petroleum products in thesoil or ground water on the property.3.1.7 environmentalliabilitiesassetretirementobligations,accrued liabilities,and loss contingencies associ-ated with any natural conditions or manmade incidents,includ-ing terrorism,that pose an unacceptable risk to health,safety,property,or the environment that would be the subject of anenforcement action or other legal action.3.1.8 Federal Register,(FR)publication of the UnitedStates government published daily(except for federal holidaysand weekends)containing all proposed and final regulationsand some other activities of the federal government.When1This guide is under the jurisdiction ofASTM Committee E50 on EnvironmentalAssessment,Risk Management and Corrective Action and is the direct responsibil-ity of Subcommittee E50.05 on Environmental Risk Management.Current edition approved July 1,2011.Published July 2011.Originally approvedin 2001.Last previous edition approved in 2007 as E2173 07.DOI:10.1520/E2173-11.2This guide alone does not satisfy or include all disclosure requirements underGAAP,SEC,or any other agency or regulatory body.Appendix X1 provides someexamples of where such requirements are contained.3For referenced ASTM standards,visit the ASTM website,www.astm.org,orcontact ASTM Customer Service at serviceastm.org.For Annual Book of ASTMStandards volume information,refer to the standards Document Summary page onthe ASTM website.4Available from the United States Environmental ProtectionAgency(U.S.EPA),Ariel Rios Building,1200 Pennsylvania Ave.,N.W.,Washington,DC 20460.Copyright ASTM International,100 Barr Harbor Drive,PO Box C700,West Conshohocken,PA 19428-2959.United States1 regulations become final,they are included in the Code ofFederal Regulations(CFR),as well as published in the FederalRegister.3.1.9 financial statementsinclude,but are not limited to,statements associated with shareholde