The Trouble of Asset Retirement Obligation Accounting
Changes in the oil and gas industry can affect a company’s balance sheet from several different angles, including Asset Retirement Obligation Accounting. Calculating a company’s Asset Retirement Obligation (ARO), to satisfy the Statement of Financial Accounting Standards (SFAS) can be troubleshot by implementing an ARO Software. ARO Software supports the evaluation and accounting requirements for the life cycle of a company’s assets.
When changes in the market are the issue at hand, it can create the need for considerable updates in estimations of the life cycles of a company’s assets. ARO Software can make the correct updates so that the future value, cost, and liability of a company’s assets are reported undistorted. ARO Software monitors and tracks changes that effect asset values to maintain ARO accuracy, therefore preventing future risks and damages a company might incur.
Increased functionality provided from ARO Software is very valuable when the oil and gas industry environment is shifting. Without accurate financials, a company may make costly business mistakes. However, calculating the estimations associated with AROs can be troublesome. Oil and gas companies can rely on ARO Software to provide the following areas of assistance:
- ARO Software can safeguard a company by bearing the burden of recognizing, reporting and maintaining up-to-date ARO Accounting.
- ARO Software relieves companies of monotonous and arbitrary ARO Accounting tasks.
- ARO Software provides assurance for management and stakeholders by producing true financial statements.
- ARO Software streamlines and cuts related operational and administrative costs.