GASB No. 49, Accounting and Financial Reporting for Pollution Remediation Obligation
Accounting and Reporting for Pollution Remediation Obligations
GASB No. 49, Accounting and Financial Reporting for Pollution Remediation Obligations (GASB No. 49), provides guidance on accounting and financial reporting for pollution remediation obligations to address the current or potential detrimental effects of existing pollution by participating in pollution remediation activities. This statement is effective for financial statements for period beginning after December 15, 2007.
Exceptions to Reporting Pollution Remediation Obligations
The statement does not apply to the following:
- Prevention or control obligation with respect to current operations such as obligations to install smokestack scrubbers, treat effluent, or use environment-friendly products
- Future pollution remediation activities that are required upon retirement of an asset such as power plant decommissioning
- Landfill closure and post-closure costs in the scope of GASB No.18
- Recognition of asset impairments or liability recognition for unpaid claims by insurance activities.
Pollution Remediation Obligations
Pollution remediation obligation – is an obligation to address the current or potential detrimental effects of existing pollution remediation activities. The examples of the pollution remediation activities include obligations to clean up spills of hazardous wastes or hazardous substance and to remove contamination such as asbestos, superfund sites.
Pollution remediation activities include:
- Pre-cleanup activities – includes site assessment, site investigation, corrective measures feasibility study, and design of remediation plan
- Cleanup activities – this includes neutralization, containment, or removal and disposal of pollutants, and site restoration
- External government oversight and enforcement-related activities – includes work performed by an environmental regulatory authority dealing with the site and chargeable to the government
- Operation and maintenance of the remedy –includes required monitoring of the remediation effort (post remediation monitoring).