Weather Or Not ARO Should Be Recognized In All Three Situations.

Asset Retirement Obligations
This memo is intend to present appropriate treatment of the ARO estimation problem experienced by the Lack of Information (LOI) based on the findings from interviews with all 50 of the warehouse managers and on-site visits at each of the 50 locations of its warehouses countrywide. The onsite observations search for any evidence of damages in both the on-site property like the roof, walls, floors and general conditions. The interview with the managers obtains information about the characteristics of the warehouses that are not readily observable. The information obtained is very important in the preparation of the fiscal year reports and the determination of the disposal price.

Accounting
The auditor makes sure that all the assets accounted on the balance sheet are real, the management in addition, has the authority over any asset they claim the organization owns, and that there are no claims against the assets in the balance sheet that aren’t recorded. The on-site visits and the manager interviews therefore provided sufficient proficient evidential matter that afforded the reasonable basis for the opinion regarding the fiscal year statement being audited (The Codification of Statements on Auditing Standards, AICPA, and AU Section 326)

Categories of findings
According to the interviews and onsite visits findings 23 warehouses reside in states with special asbestos handling and removal laws during building demolitions or significant renovation. LOI plans to sell 10 of these warehouses within the next five years and plans not to demolish or renovate the warehouse prior to disposal. LOI will never effectively settle the obligation to remove the asbestos from the warehouse, there is no ARO that needs to be recognized due to availability of a