2011 Volume 2 Pages 1-13
Environmental liability is a loss or expense that the company has some influence on the surrounding environment by its activity. This paper points out that environmental liability in Japan has been caused by the delay of the environmental regulation and the environmental information disclosure. This paper more focuses on the recognition of asset retirement obligation, and studies the definition of environmental liability and the concept in accounting standards of asset retirement obligation. In addition, this paper illustrates the financial statements of Tokyo Electric Power Company, Incorporated as a example of the environmental liability, and discusses the problem of the environment liability & asset retirement obligation and the importance of them.
