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 to help municipalities implement the new standard. This toolkit is free for members. To access the toolkit, please sign in and download from the link below. If you are not a member and are interested in accessing the toolkit, please contact Shira Babins (firstname.lastname@example.org).
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. email@example.com, 6132123698.
PSAB ARO Case Studies
As announced in December 2019, we will be working with select municipalities to create in-depth case studies. We thank all municipalities that have expressed interested in volunteering.
Check back on this page for the case studies in the near future.
PS3450 and PS3280 Webinars and Workshops
We are offering a comprehensive training package that contains need-to-know information on the new PS3450 and PS 3280 standards. You may purchase these important training sessions as a package or individually. Visit our training page
to learn more.
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.