Note X – Pollution Remediation Obligations

Note X – Pollution Remediation Obligations

A template for this note is not available. See “Instructions to preparer” for various disclosures that may be required.

Instructions to preparer:

These note disclosures are required by GASB Statement 49, Accounting and Financial Reporting for Pollution Remediation Obligations.

Required note disclosures:

1. For recognized pollution remediation liabilities and recoveries of pollution remediation outlays, governments should disclose the following:

a. The nature and source of pollution remediation obligations (e.g., federal, state, or local laws or regulations).

b. The amount of the estimated liability (if not apparent from the financial statements), the methods and assumptions used for the estimate, and the potential for changes due to, for example, price increases or reductions, technology, or applicable laws or regulations.

c. Estimated recoveries reducing the liability.

2. For pollution remediation liabilities that are not yet recognized because they are not reasonably estimable, governments should disclose a general description of the nature of the pollution remediation activities.

3. If the government has environmental credits or allowances, a disclosure should be made about the credits. Include information on if the government has any plans to sell the credits and that the credits currently hold no value and will not have value until the time of sale.