Asset Retirement Obligation

Valuation of Infrastructure Assets & Specialized Assets Purchase Price Allocations for Mergers & Acquisitions Impairment Studies for Tangible Assets...

13 downloads 835 Views 118KB Size
Asset Retirement Obligation | Valuation of Fixed Assets | Mining Valuation | IFRS | Financial Institutions | Financial Institutions in India | Valuation of Financial Securities 

Asset Retirement Obligation An asset retirement obligation (ARO) is a liability associated with the eventual retirement of a fixed asset. The liability is commonly a legal requirement to return a site to its previous condition.

Asset Retirement Obligation An asset retirement obligation (ARO) is a liability associated with the eventual retirement of a fixed asset. The liability is commonly a legal requirement to return a site to its previous condition. A company should recognize the fair value of an ARO when it incurs the liability and if it can make a reasonable estimate of the fair value of the ARO. If a fair value is not initially obtainable, recognize the ARO at a later date, when the fair value becomes available. If a company acquires a fixed asset to which an ARO is attached, recognize a liability for the ARO as of the fixed asset acquisition date. Recognizing this liability as soon as possible gives the readers of a company's financial statements a better grasp of the true state of its obligations Need : Accounting for Asset Retirement Obligations addresses financial accounting and reporting for obligations associated with the retirement of tangible long-lived assets and the associated asset retirement costs as stated in the statement of Financial Accounting Standards No. 143 (as per US GAAP) & IAS 37 (as per IFRS) ARO generally pertains to specialized industry applications such as offshore oil platforms, nuclear power plants, mining operations, landfills, and underground storage tanks. However, the criteria for recognizing asset retirement obligations are intended to apply to situations encountered more frequently in practice. Major Industries that are covered under the purview of ARO are Oil and Gas, Telecommunication, Utilities, Mining and Retail.

RBSA’s Role In a today’s scenario, it is essential to review the existence of asset retirement obligations. If an asset retirement obligation is identified, we

determine its fair value and subsequently reassess and adjust the obligation, as necessary. Thus, there need for transparent and vigorous valuations to support corporate transactions and to meet regulatory and accounting requirements has increased. But justifying the value of assets and liabilities has grown more complex and critical for most businesses. Our professionals bring merit in valuations to provide you with valuation advice for a multitude of purposes. We, as a team, can help you carry out the model review, model support and model-build activities to arrive at Fair value of Obligations pertaining to asset retirement at any given point of time which companies may need to make key decisions and improve your strategic outcomes and contribute to appropriate financials disclosures as per applicable reporting standards pertaining to Asset Retirement Obligation. Credentials: Following are select credentials in Asset Retirement Obligation:  Valuation of Asset Retirement Obligations of Subsea Network of Reliance Globalcom Limited for Financial Reporting Purposes under IFRS.  Valuation of Mines and Estimation of Asset Retirement Obligation of Lime Stone Mines of Binani Cements for the purpose of Financial Reporting under IFRS RBSA Services         

Loss Assessment Valuation ESOP Valuation Loss of Profit Valuation Infrastructure Valuation Transaction Structurings Plant Valuation Infrastructure Advisory Financial Advisory Services Brand Valuation

Valuation     

Business Valuation Valuation of Brands, Intangible Assets & Intellectual Property Valuation of Financial Securities, Instruments & Derivatives Valuation of Industrial Assets, Plant & Machinery Valuation of Real Estate

       

Valuation of Infrastructure Assets & Specialized Assets Purchase Price Allocations for Mergers & Acquisitions Impairment Studies for Tangible Assets Impairment Studies for Intangible Assets & Goodwill Mines, Mineral Advisory and Valuation Valuation of ESOPs and Sweat Equity Valuation for Tax, Transfer Pricing and Company Law Matters Fairness Opinions

Investment Banking       

Mergers & Acquisitions Transaction Structuring & Advisory Due Diligence – Financial, Tax and Business Fairness Opinion Corporate Finance Advisory Corporate Restructuring, Business Reorganization Partner Search and Joint Ventures

Advisory Services Financial Advisory for Dispute & Litigation         

Valuation & Financial Advisory Services Loss Assessment, Damages & Loss of Profit Analysis Independent Expert testimony Anti-trust & Competition Advisory Post-Acquisition Disputes, Joint Venture & Shareholder Disputes Civil & Construction Disputes, Real Estate Disputes Environment Damage Assessment Intellectual Property Rights Dispute Forensic Audit

Strategic & Risk Advisory Services  Techno Economic Feasibility Studies  Economic Viability & Financial Appraisal  Business Plan Preparation

Real Estate Advisory Services  Financial Modeling and Highest & Best Use Studies  Investment Related Due-Dilligence Exercises Infrastructure Advisory Services  Bid Advisory and Bid Process Management  Preparation of Information Memorandums  Preparation of Detailed Project Reports Technical Assurance Services       

Technical Due Diligence Reviews for Mergers & Acquisition Lender’s & Investor’s Engineer Services Independent Engineer’s Services Technical Opinion and Audits Chartered Engineer’s Opinion & Certification Project Cost Investigations & Forensic Advisory Project Appraisal and Monitoring

International Reach

o

Australia

o

Bahrain

o

China

o

Europe

o

Germany

o

Hong Kong

o

Sri Lanka

o

India

o

Japan

o

Kuwait

o

Oman

o

Qatar

o

Saudi arabia

o

Bangladesh

o

Singapore

o

South Africa

o

UAE

o

USA

o

United Kingdom

o

Malaysia

CONTACT US Corporate Office Mumbai: 21-23, T.V. Industrial Estate, 248-A, S.K. Ahire Marg, Off. Dr. A. B. Road, Worli, Mumbai – 400 030, INDIA. Tel: +91 22 6130 6000 Tel: +91 22 2494 0150 Fax: +91 22 6130 6001

Delhi Office: 1108, Ashoka Estate, 24 Barakhamba Road, New Delhi – 110 001, INDIA. Tel: +91 11 2335 0635 Tel: +91 11 2335 0637 Tel: +91 99585 62211 Bangalore Office: Unit No: 104, 1st Floor, Sufiya Elite, #18, Cunningham Road, Near Sigma Mall, Bangalore – 560 052, INDIA. Tel: +91 80 4112 8593 Tel: +91 97435 50600 Head Office Ahmedabad: 912, Venus Atlantis Corporate Park, Anand Nagar Road, Prahaladnagar, Ahmedabad – 380 015, INDIA. Tel: +91 79 4050 6000 Fax: +91 79 4050 6001 Surat Office: 37, 3rd Floor, Meher Park ‘A’, Athwa Gate, Ring Road, Surat – 395 001, INDIA Tel: +91 261 246 4491 Jaipur Office: “Karmayog”,A-8, Metal Colony, Sikar Road, Jaipur – 302 023, INDIA. Tel: +91 141 233 5892 Tel: +91 141 233 6138 Fax: +91 141 233 5279 Asset Retirement Obligation | Contact Asset Retirement Obligation