A new accounting standard that addresses the reporting of legal obligations associated with the retirement of tangible capital assets is required.
Reporting guidance on asset retirement obligations was covered in the pre-changeover accounting standards in Part V of the CPA Canada Handbook – Accounting. There is not yet specific accounting guidance in this area in the CPA Canada Public Sector Accounting (PSA) Handbook. Government organizations transitioning to the PSA Handbook would need guidance in this area.
This project will address the recognition, measurement, presentation and disclosure of legal obligations associated with retirement of tangible capital assets.