Lack of Information

698 WordsJun 2, 20143 Pages
Case 10-4 Lack of Information As indicated in the following memo, Lack of Information (LOI) has identified obligations to handle and dispose of asbestos upon retirement of several of its warehouses. Also as reflected in the memo, LOI has decided that it is not required to recognize any liabilities related to these obligations because it has asserted that the obligations are not probable or that it does not have sufficient information available. Required: • For each identified obligation, determine whether you agree with LOI’s conclusion and discuss the basis for your determination. Copyright 2007 Deloitte Development LLC All Rights Reserved. Case 10-4: Lack of Information Page 2 MEMO To: From: Subject: Date: Audit…show more content…
Case 10-4: Lack of Information Page 3 • Regarding 13 of the 23 warehouses containing asbestos that reside in states with special asbestos handling and removal laws, LOI has owned and operated for over 50 years with only minor renovations and repairs being performed over those years. LOI has no plans in the foreseeable future to make significant renovations or to demolish the warehouses, but will continue to perform maintenance and repair activities as deemed necessary. LOI does not have sufficient information to measure its asset retirement obligation due to an indeterminate settlement date based on the guidance in ASC 410-20-25-10 (paragraph A16 of Statement 143). Copyright 2007 Deloitte Development LLC All Rights
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