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ASC 410-30, Environmental Obligations, provides accounting considerations related to the recognition, measurement, presentation, and disclosure of environmental remediation liabilities. ASC 410-30-55 provides illustrations and examples of the disclosure requirements related to environmental remediation liabilities, environmental remediation costs, loss contingencies, and liabilities with numerous potential outcomes. The following section provides a discussion of the presentation and disclosure considerations for environmental obligations. Additionally, see FSP 24 for presentation and disclosure considerations related to risks and uncertainties and FSP 23.4.3 for discussion of insurance recoveries related to environmental obligations.
ASC 410-30-10-1 discusses when a reporting entity should recognize a liability relating to environmental remediation.

ASC 410-30-10-1

This Subtopic requires that an entity recognize a liability for obligations associated with environmental remediation liabilities that relate to pollution arising from some past act, generally as a result of the provisions of Superfund, the corrective-action provisions of the Resource Conservation and Recovery Act, or analogous state and non-U.S. laws and regulations.

As discussed in ASC 410-30-25-16, environmental contamination costs are generally expensed. ASC 410-30-25-18 allows for the capitalization of environmental remediation costs if certain criteria are achieved. For example, if a reporting entity is involved in an oil spill and decides to reinforce the hulls of oil tankers to improve the safety of the ships and prevent future oil spills, those costs may be capitalized. In addition, if a reporting entity acquires fixed assets to clean up an oil spill, it may capitalize the costs unless the assets do not have a future use. These assets should be classified on the balance sheet as current or noncurrent based on the ASC Master Glossary definitions. Presentation of the remediation liabilities and these related assets is discussed in the following section.
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