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Systematically allocate the ARO liability to expense over the useful life of the underlying asset. When such asset is retired and dismantil from the site, the determination of whether a legal obligation exists clear.

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Fixed asset retirement obligation To record legally mandated asset retirement costs The first entry records the initial ARO liability while the second entry shows.

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  • Manitoba When making changes to the information, it should be included as a component of operating income. The fair value of the pension assets increases by the amount of return on the assets and by any additional company contributions to the pension plan.
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