FASB 143

Issued in August- 2001- FASB 143 accounts for asset retirement obligations. The standard requires entities to record the fair value of a liability fo an asset retirement obligation in the period in which it is incurred. When the liability is initially recorded- the entity capitalizes the cost by increasing the carrying amount of the related long-lived asset. Over time- the liability is accreted to its present value each period- and the capitalized cost is depreciated over the useful life of the related asset. Upon settlement of the liability- an entity either settles the obligation for its recorded amount or incurs a gain or loss.