Asset Retirement Obligation

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  • Опубликовано: 30 окт 2024

Комментарии • 48

  • @jonathanwieler8863
    @jonathanwieler8863 4 года назад +8

    I recommend all of your videos to my peers in college. You do SUCH a good job teaching these concepts!

  • @MyFinancialFocus
    @MyFinancialFocus 2 года назад +2

    I love how just studying accounting introduces me to all of the things that bigger businesses go through.

  • @MyteeBumbleBee
    @MyteeBumbleBee 4 года назад

    Thank you...THANK YOU! I just needed a simplified and detailed explanation without all the double babble I kept encountering from the published statements online. I understand how this concept works and the instructor's explanation with a perfect example was exactly what I needed. Thank you so much! I'm a subscriber now!

  • @Silmeria0724
    @Silmeria0724 6 лет назад +4

    I just discovered your videos and they are awesome! Thank you so much!! I`ve been using them in conjunction with my online classes.

    • @Edspira
      @Edspira  6 лет назад +1

      Fantastic...Best of luck to you in your studies!

  • @virgomillennium
    @virgomillennium 4 года назад +1

    I just discovered this channel. Life saver tutorial ! Thank you

    • @Edspira
      @Edspira  4 года назад +1

      Happy to help!

  • @raviagarwal2793
    @raviagarwal2793 4 года назад

    Too good and simply explained. Thanking you for every video you have uploaded for such concept explanations.

  • @godofwar2060
    @godofwar2060 9 лет назад +5

    Thanks for the help. I was having a hard time with this!

  • @pmearsh
    @pmearsh 6 лет назад

    Thank you so much for this videos. AROs did not make sense to me before, now they are simple & easy to understand. Very helpful.

    • @Edspira
      @Edspira  6 лет назад

      Thanks Pamela!

  • @metincaglar5798
    @metincaglar5798 10 месяцев назад

    Great explanation. Thank you for all videos.

  • @Msgoodpuppy247
    @Msgoodpuppy247 3 года назад

    Thank you!! This was very helpful! I was stuck on this part while studying for my CPA exam

  • @ФедяСтулов-г9и
    @ФедяСтулов-г9и 2 года назад

    I can't believe it can be this good

  • @bin-ob
    @bin-ob 8 месяцев назад +1

    Great explanation, but minor correction, it's called "accretion expense" not an interest expense because it's not a note or a bond. Thank you!

  • @mspolicecall
    @mspolicecall 3 года назад +1

    This holds hands with my intermediate accounting by Gordon and raedy textbook

    • @Edspira
      @Edspira  3 года назад

      Happy to help!

  • @ExcelTutorials1
    @ExcelTutorials1 3 года назад +1

    This was amazingly helpful, thank you so much!

    • @Edspira
      @Edspira  3 года назад

      Glad it was helpful!

  • @rawanalzubi6144
    @rawanalzubi6144 3 года назад

    This is an amazin explanation, Thanks a lot !

  • @stephenbishopp10
    @stephenbishopp10 5 лет назад +6

    I've heard the periodic entry to increase ARO has a Debit to Accretion Expense instead of Interest Expense. Could you please explain this? Is the only explanation for this expense to increase the ARO to eventually become the future value of the obligation?

  • @Etntr
    @Etntr Месяц назад

    great video thanks

  • @gabriellaann4426
    @gabriellaann4426 9 лет назад +4

    GREAT VIDEO THANK YOU!

  • @leahk7057
    @leahk7057 9 лет назад +1

    Thank you very much for your great video!

  • @lithtanumi3874
    @lithtanumi3874 5 лет назад

    Great explanation! Thank you.

  • @ahmedwagih5752
    @ahmedwagih5752 3 года назад

    Thank you so much. You are a life saver

  • @hcamry
    @hcamry 5 лет назад +1

    Thank you. But what I dont understand is why is there an ARO asset in the first place. Lets say I build a factory for $500k. Then later I realize there is an ARO liability in the future costing $2 million after 10 years. So would there be an additional ARO asset also with pv of $2 million in addition to the asset? Couldnt there not be a contra liability instead to balance them out. It doesnt make sense (i know it is gaap but i think it doesnt make sense)

  • @ariah5093
    @ariah5093 Год назад

    Thank you!

  • @Amiyaamil
    @Amiyaamil 5 лет назад

    Thank you for making this video.do u have video on participation of dividends? I didn't find that in your playlist.

  • @Workerbee562
    @Workerbee562 6 лет назад

    Great video! well explained

  • @vickiliu4887
    @vickiliu4887 4 года назад

    great video!!

  • @zainabdurrani7417
    @zainabdurrani7417 7 лет назад

    very helpful video

  • @samuelkwon5824
    @samuelkwon5824 6 лет назад

    So essentially, we figure out what the cost is to retire the asset, and accrue the ARO as a liability account to that amount (accrued through interest expense cap), and then retire Db. ARO Cr. Cash and record the gain or loss if any. The question I have is what is the interest expense rooted in? A loan we took out to buy the asset?

    • @lookitskirby
      @lookitskirby 3 года назад

      Remember that the ARO is recorded in it's present value calculation. It's not based off a loan but an obligation we agreed to when we signed a contract or lease. A better name for interest expense is accretion expense which is the cost associated with an increase in a liability’s carrying value over time

  • @cplancarte4
    @cplancarte4 8 лет назад

    So if I'm correct, the Gain at settlement will be reflected on the balance sheet at year end as an asset?
    The other would be income statement, and be reflected as "Other Income."
    Answers, thoughts.

    • @cplancarte4
      @cplancarte4 8 лет назад

      Per PWC, "For transactions in which the asset or service surrendered is not the reporting entity’s normal product or service, recording the transaction as other income is appropriate. "

  • @gowthen1
    @gowthen1 10 лет назад +1

    thank you it makes sense

  • @wowstarcraft
    @wowstarcraft 3 года назад

    What amount would be the ARO for interest expense in 2018 and 2019?

    • @lookitskirby
      @lookitskirby 3 года назад

      ARO Interest Exp Present Value
      Jan-1-2017 - 375,657
      Dec-31-2017 37,566 413,223
      Dec-31-2018 41,322 454,545
      Dec-31-2019 45,455 500,000
      To calculate the interest expense, multiply the discount rate by the current present value of the ARO.

  • @levytheman91
    @levytheman91 7 лет назад

    Shouldn't depreciation be the ARO+assets value/useful life?

  • @gymbymanVice
    @gymbymanVice 3 года назад

    great !

  • @natasha_dh
    @natasha_dh 8 лет назад

    very helpful

  • @jayceebalanag6511
    @jayceebalanag6511 2 года назад

    how do you do that?

  • @natasha_dh
    @natasha_dh 8 лет назад

    very helpful

  • @velianadwiamelinda9680
    @velianadwiamelinda9680 2 года назад

    how do you do that?

  • @波惠
    @波惠 2 года назад

    how do you do that?