The Governmental Accounting Standards Board (GASB) issued
Accounting and Financial Reporting for Pollution Remediation
Obligations, an exposure draft (ED) that specifies five
circumstances—any of which would require a government to estimate its
obligations to address the current or potential detrimental effects of
existing pollution (
www.gasb.org/exp/exdfpg.html ). The ED also establishes a
probability-weighted method—the expected cash-flow technique—to
estimate liabilities, expenses and expenditures. If approved, the ED’s
requirements would be effective for financial statements covering
periods beginning after June 15, 2007. Comments are due May 1, 2006.
Government Accounting
