Governments See New Accounting Rules for Brownfields
GASB’s Wesley Galloway explained the rule for accounting and financial reporting of pollution remediation obligations: “If you have an obligation to clean something up, you should start reporting it,” he told
EBN. If a government owns a contaminated property that it is required to clean up, that obligation brings financial liabilities, including costs associated with environmental assessment, cleanup, and post-remediation monitoring; agency oversight fees; and legal expenses. Those liabilities belong on financial reports. At the same time, the rule sets standards for when governments can count pollution remediation expenses as assets.
Published October 27, 2006