GASB requires governments to report a liability for obligations to permanently remove a capital asset from service. GASB Statement 83 focuses on obligations that meet the following criteria:

  1. The obligation is for the retirement of a tangible capital asset.
  2. The obligation is for the disposal of a replaced part that is a component of a tangible capital asset.
  3. The obligation is for the environmental remediation associated with the retirement of a capital asset that results from the normal operation of that capital asset. OFR has developed the questionnaire below to assist in determining whether your agency has incurred an obligating event requiring recognition of an asset retirement obligation for this fiscal year.
This questionnaire is due July 17, 2023.
1. Does the agency own or lease any of the following capital assets? (Nuclear reactors, wind turbines, water or sewer treatment plants, x-ray machines, underground or gas storage tanks, etc.)
2. Has the agency received approval from federal, state, or local laws or regulations to retire tangible capital assets?

a. If yes, list the capital asset name, issuing entity, and  applicable law:

b. If yes, can the agency reasonably estimate the timing and/or amount of the asset retirement liability at June 30, 2023?
3. Does the agency have a legally binding contract to retire tangible capital assets?

a. If yes, list the capital asset name, issuing entity, and applicable law:

b. If yes, can the agency reasonably estimate the timing and/or amount of the asset retirement liability at June 30, 2023?
4. Does the agency have a court issued judgment to retire tangible capital assets?

a. If yes, list the capital asset name, issuing entity, and applicable law:

b. If yes, can the agency reasonably estimate the timing and/or amount of the retirement liability at June 30, 2023?
5. Is the agency aware of any environmental contaminants that created an imminent endangerment to public health or welfare or environment that is a result of the normal operation of a tangible capital asset?
6. Do the agency’s legally enforceable liabilities associated with tangible capital assets include the following? (check all that apply):



MS Department of Finance and Administration
Office of Financial Reporting
POST OFFICE BOX 1060 * Jackson, Mississippi 39215-1060 * TEL: 601-359-2160 * FAX: 601-359-3896