scope:

Purpose

A. This chapter prescribes the accounting policy for measuring, recognizing, and disclosing environmental liabilities and the procedures to record Department of Defense (DoD) environmental liabilities. General accounting principles and policy for liabilities are in Chapter 8. The policies and procedures prescribed in this chapter apply to all environmental liabilities regardless of the funding source or whether the funding is available.

B. This chapter implements applicable provisions of:

1. Statements of Federal Financial Accounting Standards (SFFAS) 5, "Accounting for Liabilities of the Federal Government;"

2. SFFAS 6, "Accounting for Property, Plant, and Equipment," paragraphs 38, 39, 93, 97 and 98.

3. SFFAS 23, "Eliminating the Category National Defense Property, Plant and Equipment;"

4. Statement on Auditing Standards (SAS) Number 57/ AU Section 342, "Auditing Accounting Estimates;"

5. Federal Accounting Standards Advisory Board (FASAB) Technical Bulletin 2006-1, "Recognition and Measurement of Asbestos-Related Cleanup Costs," amended by FASAB under Technical Bulletin 2011-2, "Extended Deferral of Effective Date of Technical Bulletin 2006-1; Federal Financial Accounting and Auditing Technical Release Number 2, "Determining Probable and Reasonably Estimable for Environmental Liabilities in the Federal Government;"

* 6. Federal Financial Accounting Technical Release 10, "Implementation Guidance on Asbestos Cleanup Costs Associated with Facilities and Installed Equipment;"

* 7. Federal Financial Accounting Technical Release 11, "Implementation Guidance on Cleanup Costs Associated with Equipment."

* 8. Federal Financial Accounting Technical Release 14, "Implementation Guidance on the Accounting for the Disposal of General Property, Plant, and Equipment (PP&E)."

C. This chapter does not address roles and responsibilities in the preparation of financial reports, budget formulation for environmental liabilities, describe different types of Property, Plant, and Equipment (PP&E) or provide technical environmental guidance.

1. Refer to Volumes 2A and 2B for guidance on budget formulation.

2. Refer to Chapter 6 for descriptions of the different types of PP&E discussed in this chapter.

* 3. Refer to Volume 6A, Chapter 3 for guidance on roles and responsibilities in the preparation of financial reports.

4. Refer to the following management guidance issued by the Office of the Deputy Under Secretary of Defense (Installation and Environment) for technical guidance: "Management Guidance for the Defense Environmental Restoration Program" and "Guidance for Recognizing, Measuring, and Reporting Environmental Liabilities not Eligible for Defense Environmental Restoration Program Funding."