Asset Retirement Obligations

Assent 143 is a software solution that addresses the complexity in mananging the measurement of asset retirement obligation accounting in accordance with SFAS 143 Asset Retirement Obligations (SFAS 143). It replaces inefficient, costly and complex methods for calculating asset retirement obligations, which have typically been done with spreadsheets. Its ease of use enables companies to streamline procedures and reduce the costs associated with managing, maintaining and updating cumbersome spreadsheets. The Assent 143 solution was developed after thousands of hours reviewing spreadsheets and reporting processes utilized by numerous industry participants of varying size and complexity.

Solution Features:

  • Provides a reliable, auditable and repeatable solution to your SFAS 143 reporting requirements in a secure SQL Server database.
  • Import features allow data to be loaded easily into the system.
  • Handles incremental changes to variables such as when costs increase or decrease due to economic factors or expected life changes. Assent 143 can handle single or multiple changes to variables in a logical, consistent manner.
  • Numerous standardized reports easily exported to Excel minimize time required to determine balances for roll-forwards. Other reports include summaries of the number of wells/assets in the system, the five-year contractual obligation table, salvage value, and the estimated plugging and abandonment costs.

Solution Benefits:

  • Reduced Operational and Reporting Risks — Standardized reports facilitate your reconciliation process and allow you to concentrate on making sure you have a complete population rather than the math programmed into a spreadsheet.
  • Industry Best Practice Methodology — We examined hundreds of different spreadsheets that our clients had programmed and took the best aspects to construct our specialty software.
  • Auditing and Change Control — All new data and changes to data are tracked to the user who performed the action and can be easily identified. In addition, changes can be restricted to authorized users only.
  • Reduced Time to Prepare Reports — Standard reports streamline procedures and reduce overhead costs through reductions in staff time spent managing, maintaining and updating cumbersome spreadsheets.

Assent 143 – ARO Software - brings consistency and accuracy to the calculation, and frees up financial reporting resources for more productive tasks. We have oil and gas clients running on the application that range in size from 10 wells up to 15,000-plus wells.