PSAB Asset Retirement Obligations (ARO) Standard - Resources

 

PS 3280 is a new accounting standard covering asset retirement obligations (ARO) that was approved by PSAB in March 2018. The standard must be applied by all public sector entities who prepare their financial statements under PSAB, including all Canadian municipalities.

 

Common asset retirement obligations under the scope of PS 3280 have not previously been recognized by municipalities, such as obligations to retire buildings with asbestos or underground fuel storage tanks. The implementation of the standard will require municipalities to recognize obligations which were previously out of scope of accounting standards. Similarly, the accounting of obligations for solid waste landfills will change with PS 3280.  

Due to the ongoing impact of the COVID-19 pandemic, PSAB has approved a decision to defer the effective dates of all upcoming standards by 1 year. PS 3280 will be effective on April 1, 2022. Earlier adoption is permitted.

 

MFOA has developed a toolkit and accompanying case study to help municipalities implement the new standard. The toolkit and case study is free for members. To access the resources, please sign in and download from the link below. If you are not a member and are interested in accessing the toolkit and case study, please contact Suzanna Dieleman (suzanna@mfoa.on.ca).

KPMG is very proud to have worked together with the Municipal Financial Officers Association to develop the Municipality Asset Retirement Obligations Overview & Implementation Guide. We trust that your municipality will find the Guide to be a practical reference tool in applying this new accounting standard. Reach out to us at any time to discuss particular implementation issues for your municipality, and implementation advice. This is our passion, and we are keen to share it with you. bchurch@kpmg.ca, 6132123698.


PS3280 Webinars and Workshops 

We are offering comprehensive training that contains need-to-know information on the PS 3280 standard: PSAB Update and Planning for Asset Retirement Obligations and ARO Ask the Expert Webinar Series.

Our Toolkit on PSAB Asset Retirement Obligations

To access the toolkit, please sign in to our website and download the pdf below. Not a member? Our toolkit is available for purchase. Click here to purchase the toolkit in pdf form.

Municipal ARO Case Study *New*

To demonstrate the application of MFOA's ARO Toolkit, a review of five municipalities’ TCAs was performed to identify sources of ARO and provide further insights on TCAs municipalities typically own that result in ARO. The case study reviews the AROs found in five diverse Ontario municipalities. To access the case study, please sign in to our website and download the resource below. 


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