The term “asset retirement obligation” (ARO) refers to an obligation associated with retiring a tangible long-lived asset. ARO accounting ensures financial statements accurately reflect a company’s obligations and overall value, making it crucial for accounting professionals to understand ARO rules. This course provides an overview of AROs, focusing on ASC Topic 410-20, which covers asset retirement obligations and related costs. It contrasts with ASC Topic 410-30, which addresses environmental remediation liabilities.