Asset Retirement Obligations: A Reporting Concern for Healthcare Facilities
FASB statements and SEC guidelines give direction as to how healthcare organizations should account for their asset retirement obligations (AROs) where environmental issues are concerned. A key consideration is that current costs associated with environmental problems, such as encapsulating asbestos, are to be accounted for as part of an asset's cost and depreciated over the asset's remaining life.
Berg, Gary; Bayes, Paul E.; and Morgan, Robert G.. 2008. Asset Retirement Obligations: A Reporting Concern for Healthcare Facilities. Healthcare financial management : journal of the Healthcare Financial Management Association. Vol.62(11). PMID: 18990844 ISSN: 0735-0732