Designation:E3123−18StandardGuideforRecognitionandDerecognitionofEnvironmentalLiabilities1ThisstandardisissuedunderthefixeddesignationE3123;thenumberimmediatelyfollowingthedesignationindicatestheyearoforiginaladoptionor,inthecaseofrevision,theyearoflastrevision.Anumberinparenthesesindicatestheyearoflastreapproval.Asuperscriptepsilon(´)indicatesaneditorialchangesincethelastrevisionorreapproval.1.Scope1.1Purpose—Thepurposeofthisguideistoprovideaseriesofoptionsorinstructionsconsistentwithgoodcommer-cialandcustomarypracticeforrecognitionandderecognitionofenvironmentalliabilities.ThisguideisconsistentwithGenerallyAcceptedAccountingPrinciples(GAAP).Recogni-tionofenvironmentalliabilitiesisessentialtodeterminingthecurrentbookvalueofanentity.Anentitymayhavefuturespendingtoextinguishriskandliabilitiestriggeredinthepast.Seriousconsequences,rangingfromfailedauditsandpoorcapitalstewardshiptofinancialfraudandbankruptcy,existforentitiesomittingmaterialinformationfromfinancialstate-ments.1.2Objective—Thisguideenablesuserstoreliablydeter-mineifagiventypeofenvironmentalliabilityexistsandsubsequentlyhasbeensettled,consistentwiththeaccountingdefinitionsinplace.1.3Thisinternationalstandardwasdevelopedinaccor-dancewithinternationallyrecognizedprinciplesonstandard-izationestablishedintheDecisiononPrinciplesfortheDevelopmentofInternationalStandards,GuidesandRecom-mendationsissuedbytheWorldTradeOrganizationTechnicalBarrierstoTrade(TBT)Committee.2.ReferencedDocuments2.1ASTMStandards:2E2137GuideforEstimatingMonetaryCostsandLiabilitiesforEnvironmentalMattersE2173GuideforDisclosureofEnvironmentalLiabilitiesE3033GuideforBeneficialUseofLandfillsandChemicallyImpactedSitesGenerallyAcceptedAccountingPrinciples:2.2FASB–FinancialAccountingStandardsBoard3StatementofAccountingConceptsNo.6ElementsofFinan-cialStatementsStatementofAccountingConceptsNo.8ConceptualFrame-workforFinancialReportingASCTopic410-20–assetretirementobligationsASCTopic410-30–otherenvironmentalobligationsASCTopic420–exit/di...
