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Asset Retirement Obligation (ARO)

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Helps organizations maintain compliance with accounting standards that demand that entities recognize any ARO liability within the period in which it was incurred. At the time of acquisition or construction, the ARO liability must be accounted for at the present value of the expected asset retirement or remediation costs. This is achieved through adding an asset to the balance sheet that is equivalent in value to the ARO liability which is then depreciated so that the total costs are recognized over time.


Features

  • Incorporates all Asset Retirement Obligations (ARO) into the asset register.
  • Compliant with audit requirements and meets all legislation.
  • Forecasts all future costs.
  • Avoid complex spreadsheets, or having two asset registers that need to be reconciled.
  • Easy-to-use depreciation method for maximizing efficiency.
  • Saves time and minimizes error.
  • Reliable data for audit.