Professional and Regulatory Organization

Review the GASB’s latest publications or pronouncements on pollution remediation.

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1. Summarize the GASB’s definition of pollution remediation obligations.

2. Describe the potential effects of identified pollution remediation obligations on the financial statements of SLGs. Specifically, what effects would such obligations have on an entity’s liabilities? On its capitalized assets?

3. What are the obligating events that give rise to potential obligations?

4. When are liabilities and expenditures and/or expenses associated with pollution remediation potentially accrued?

Weaverling Company rents 10,000 square feet of store space for $36,000 per year. The amount of square footage by department is as follows: Department A: …….. 2,600 sq. ft.Department B: …….. 2,400 sq. ft.Department C: …….. 1,800 sq. ft.Department D: …….. 3,200 sq. ft.

Allocate the annual rent expense among the four departments on the basis of relative square feet of floor space occupied.

 

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