New Accounting Rule Creates Challenges For Companies

Law360, New York (May 9, 2006, 12:00 AM EDT) -- A new accounting rule dealing with asset retirement obligations is triggering a number of companies to delay their 10-K filings, report material weaknesses and restate their financial statements, according to analysis from a consulting firm that focuses on environmental financial reporting.

Many companies are struggling to cope with the complexity of Financial Interpretation Number 47, which requires companies to take inventory and estimate full costs in order to recognize liability for environmental cleanup obligations, according to Advanced Environmental Dimensions (AED).

Since the rule was implemented by...
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