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should this be also covered under:
Accounting Standards Codification
Topic 410SubTopic 20Subsection 50?
the standards are still being developed, but i don't think either FASB or XBRL are going away any time soon.
for all the complexities whether in law or technology, this is simply good old accounting accrual or provision, but i don't want to monopolize the topic here as you have put a lot of work to create it.
Nice blog Nathan. Digging out for non-technical blogs and found this useful 🙂
Hi Nathan ,
Quite an interesting sharing. It is a good read 🙂
Just two quiers
1) Is AROM is linked with inflation management too? So if inflation is increasing- Obligation expenses will also increase?
2) Sometimes because of addtional wear & tear; unplanned deperciation is posted. How this event will be captured in AROM?
2. I don't think you'd have to adjust the ARO value because the cost of removing the asset and restoring the property isn't changed. But if an accountant feels differently and wants to revalue the ARO as well, then you can certainly do that from the AROM side. It would then flow through to the ARO asset. But no posting is made to the underlying fixed asset.
Nice & Interesting one and it is absolutely one good read 🙂
Thanks & Regards,
Just a quick check is this business function relevant for Oil& Gas Energy or it can be activated in other industries too e.g. Public service industry.
I try to find the business function but I am not able where it is ?
It is not industry specific.
AROM is sold as an add-on. It is not a business function within an EhP.
Ohh I see.. so does that add-on comes by default or have to buy separately.
Separately. "Sold as an add-on".