Accounting for Asset Retirement Obligations -An Example of Food Service Industry-

Abstract

Potential liabilities held by companies due to the effect of accounting standards for asset retirement obligations were revealed. In this paper, I clarify problems in accounting methods for asset retirement obligations using the food service industry as an example. For asset retirement obligations, the approach to recording expenses differs significantly according to each company in the food service industry. In order to make comparisons between companies, it is necessary to standardize the accounting of asset retirement obligations in the food service industry