PS 3280 - Asset Retirement Obligations
We are developing our Project Plan for the implementation of this new standard. After reviewing numerous guides and interpretation documents, we have 2 initial questions for other Muni's and RD's:
1. Of the 3 Transition choices (Prospective, Retrospective, Modified Retrospective), are you leaning towards one?
2. Regarding determining if a "Legal Obligation" exists to retire an asset, what resources are you relying on to identify "all existing laws & regulations" that could impose such an obligation?
As a starting point, we plan to ask our auditors for their list of laws/regs that they will be auditing against and their list of typical ARO assets, as well as ask all our in-house experts about regulations in their areas. Obviously, we will also be looking at our own contracts, agreements, and Bylaws. But at that point, knowing exact sections of any specific Act that could impose a legal obligation seems a rather daunting task. How are you interpreting this? Are you planning to contract this out, or rely on in-house knowledge and research from teams involved with the Planning, Developing, Construction, and Maintenance of assets?
Coral Sawkins, CPA, CGA
Strategic Financial Analyst, City of Courtenay