AnonymousInactiveMarch 9, 2021 at 6:25 pmPost count: 6
I’ve just become aware of the new accounting requirement under PS3280 to identify the value of future liabilities related to the retirement of an asset. Liabilities with a legal obligation to incur retirement costs include asbestos, natural gas storage, power plants, underground fuel storage, etc. I understand that this accounting requirement will be effective April 1, 2022. Wondering if anyone else has looked into this and/or if anyone has engaged consultants to assist in identifying and estimating liabilities.
SpencerwoodParticipantMarch 10, 2021 at 9:44 amPost count: 14
Yes, I did this for our Finance Dept last year. Our asbestos consultant took our asbestos inventory in a spreadsheet, added a unit rate for each type of item, and then multiplied the cost out for each line. That way it will be easy to adjust over time. I’ll attached the letter we got.
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AnonymousInactiveApril 20, 2021 at 8:33 pmPost count: 6
Thanks Spencer, this is helpful!
AnonymousInactiveApril 26, 2021 at 2:18 pmPost count: 6
Hi Spencer, thanks for this really helpful attachment. Is this document confidential? Or is it something that we can share with our consultant?
Rich McEvoyKeymasterMarch 11, 2021 at 6:37 pmPost count: 64
I haven’t been asked to assemble anything yet but it was brought to our attention last October. Fidelis, from Centennial, was kind enough to share the reference documentation that was forwarded. I saved it in our BoardEffect library in the Deferred Maintenance folder.
- This reply was modified 2 years, 6 months ago by Rich McEvoy.
lanchinguyenweekesParticipantMarch 15, 2021 at 1:00 pmPost count: 25
I was planning to have an asbestos invetnroy done even if our olders assets are only from 1995 since the asbestos regulation changed in 2005. As for the other environmental liabilities on our properties, I believe that an environmental site assessment (ESA) level I should be sufficient to show where they are. Then we have to find out how much it costs to remediate or remove.
AnonymousInactiveApril 5, 2021 at 3:05 pmPost count: 12
FYI there is a free 1hr Seminar being put on by Pitchin April 28th 2021. See link and Summary below for your interest.
I am sure it is a sales pitch but may have some guidance.
PSAB 3280 ARO Changes and New Reporting Obligations for Public Entities
Description: Starting in 2022 (financial reporting year-end March 31, 2022) the Public Sector Accounting Board (PSAB) section PS 3280 – Asset Retirement Obligations (ARO), will require public organizations to report and value their environmental liabilities as part of their annual financial accounting. This will require a more specific evaluation of the environmental retirement costs of any public sector assets.
This webinar will present you with an overview of the Asset Retirement Obligations standard and provide you with guidelines for effective compliance. We have assembled a panel of four subject matter experts to help guide us through the requirements of this standard and suggested strategies for gathering and validating the required data.
Dale Wiebe – Environmental Due Diligence
• History and likely causes of subsurface soil and groundwater contamination
• How to read Phase 1, 2 and 3 Environmental Site Assessments
• What prior uses cause contamination
• Remediation options
• Example site remediation budget
Sean Douglas – Hazardous Materials
• What hazardous materials exist in public buildings
• Options for managing and remediating
• Unit costs for remediation
• Example cost structure for public building
Tim McBride – Landfills
• Landfill Basics, how we manage and decommission
• Using ongoing monitoring data
• Example decommissioning cost outline
Marcus Sconci – BDO
• Summary of PSAB 3280 Requirements
• What will a public auditor look for
• What is a material item
• How to gather and maintain audit ready data
AnonymousInactiveApril 27, 2021 at 8:44 amPost count: 6
Thanks – I’m planning to attend tomorrow – it’s in my calendar.
Sheryl MaukonenParticipantMay 17, 2021 at 2:21 pmPost count: 4
I haven’t watched it yet but Pinchin did post the recording from their session on 28 April.
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