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in this video were going to talk about how to account for an asset retirement obligation otherwise known as an aro and it first might be a good idea to start by talking about what an aro is so when you think of like some big manufacturing firm or something sometimes theyll incur costs after theyve created some asset for example some kind of nuclear facilities that they have to decommission sometimes youll see that in the financial statements theres some huge liability related to that an oil rig that maybe they used it for a certain amount of time and its no longer in use and they have to you know take it out of use closing a mine so lets say theyre theyre mining ore and they have to close this mine there are costs associated with these things and we can even think of something like a landfill that has to be closed so there are costs associated with these things obligations or liabilities that the firm incurs to shut these down right to retire these long-lived assets so how do
