Lack Of Information Company

(LOI)
 Lack of Information (LOI) is a company that owns and manages 50 warehouses in the United States. LOI tries to identify and recognize possible asset hideaway obligations (ARO). According to a memo provided by Deloitte Development, LLC, auditors visited all 50 warehouses. They concluded that twenty-five of them contain asbestos. In addition, 2 of those 25 warehouses are located in states where the laws do not shoot special handling and disposal of the asbestos when the building is demolished or renovated. In 6 months, LOI will sell those 2 warehouses to a tercet party with whom LOI already has purchase/sale start out contracts. These previous contracts contained similar requirements related to asbestos. The third party never infallible LOI to remove the asbestos from the warehouses. LOI believes that it would be the case this time when interchange them those 2 warehouses. LOI estimates that the chance not to be asked to remove the asbestos is 90%. Based on this calculation, LOI considers that it will not be required to recognize any liabilities related to those obligations. 
I agree with LOIs conclusion because there is a strong probability that the third party will not ask LOI to remove the asbestos from its cardinal warehouses because they didnt ask them in the aside in a similar situation.



In addition, there is no sufficient learning available to establish the fair value of the asset loneliness obligation.
First of all, an asset retirement obligation is an obligation that arises with the retirement of a long-lived asset. An ARO is a liability and paragraph 35 of FASB Concepts Statement No. 6, Elements of Financial Statements, defines a liability as follow: probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events . [1] In this case LOI tries to identify whether or not it has a legal obligation to...If you want to work a full essay, order it on our website: Orderessay



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