Following PS 3280, a new standard implemented by the Public Sector Account Board that came into effect on or after April 1, 2022, an asset retirement obligation (ARO) is a legal obligation associated with the retirement of a tangible capital asset, Rural Municipality of West River has identified that an asset retirement obligation may exist, a liability must be recognized, and the amount of the liability should be estimated, including costs directly attributable to asset retirement activities. To address this issue and assess the liability, a Building Condition Assessment Report was prepared for municipal-owned facilities to guide the ARO.
