ASTM International - ASTM E2173-07(2011)
Standard Guide for Disclosure of Environmental Liabilities
|Publication Date:||1 July 2011|
|ICS Code (Environmental management):||13.020.10|
significance And Use:
Uses-This guide is intended for use on a voluntary basis by a reporting entity that provides disclosure in their financial statements regarding environmental liabilities. The degree and type of... View More
Uses-This guide is intended for use on a voluntary basis by a reporting entity that provides disclosure in their financial statements regarding environmental liabilities. The degree and type of disclosure depends on the scope and objective of the financial statements. Note the user should be aware that there may be contractual obligations, court decisions, or regulatory directives that may affect the flexibility in use of this guide.
The following principles are an integral part of this guide and are intended to be referred to in resolving any ambiguity or dispute regarding the interpretation of disclosures regarding environmental liabilities.
Uncertainty Not Eliminated-Although a reporting entity, as of the time when its financial statements are prepared, may hold a certain position with regard to the existence and extent of its environmental liabilities, there remains uncertainty with regard to the final resolution of factual, technological, regulatory, legislative, and judicial matters, which could affect its environmental liabilities.
Disclosure Dependent on Circumstances-Not every environmental liability warrants the same level of detail in its disclosure. Disclosure will be guided by the scope and objective of the financial statement, and accordingly, by the materiality of the environmental liability and the level of information available.
Comparison with Subsequent Disclosures-Subseque
Assessment of Risk-As the reporting entity becomes aware of an environmental liability or an environmental compliance issue, the condition or issue should be evaluated to assess the actual or potential risk to human health and environment. This process may be dependent on the regulatory environment, an understanding of the specifics of the condition or issue, potential future uses, and asset retirement obligations. For example, guidance on petroleum release sites is provided in Guide E1739 and additional guidance is provided in EPA OSWER Directive 9610.17. The degree of risk suggests the appropriate response actions and should be a factor in the level of effort devoted to developing the cost and liability estimates associated with the environmental condition or the compliance issue.View Less
1.1 Purpose-The purpose of this guide is to provide a series of options or instructions consistent with good commercial and customary practice in the United States for environmental liability disclosures accompanying audited and unaudited financial statements. This guide is consistent with Generally Accepted Accounting Principles (GAAP).
1.2 Objectives-The objectives of this guide are to determine the conditions warranting disclosure and the content of appropriate disclosure.