MFOA Committee on Accounting and Financial Reporting: Response to the Asset Retirement Obligation Exposure Draft
The Public Sector Accounting Board (PSAB) has proposed a new standard on Asset Retirement Obligations that could have a significant impact on municipalities. The proposed PS 3280 will address the recognition, measurement, presentation and disclosure of legal obligations associated with retirement of tangible capital assets. MFOA's Committee on Accounting and Financial Reporting has provided a response to the ARO Exposure Draft. The Committee believes that while PSAB's mandate to improve public sector financial reporting is essential, the proposition to implement a standard to record Asset Retirement Obligations may be too soon and that more time to develop a communication strategy as well as resources to support the implementation of the standard is required.