ASTM E2173-16

4.3.1 The degree and type of disclosure depends on the scope and objective of the financial statements. Such statements may not always be audited and prepared for the public domain.

4.3.2 For example, users may need to make non-public disclosures for the benefit of investors, lenders, regulators, tax authorities, key customers and joint venture partners.

4.3.3 Users of this guide should be aware that shareholder concerns, contractual obligations, financial assurance requirements, court decisions, and regulatory directives may affect their flexibility in use of this guide.

4.4.1 The following principles are an integral part of this guide and are intended to be referred to in resolving any ambiguity or dispute regarding the interpretation of disclosures regarding environmental liabilities.

4.4.2 Uncertainty Not Eliminated—Although a 4.4.3 Disclosure Dependent on Circumstances—Not every environmental liability warrants the same level of detail in its disclosure. Disclosure will be guided by the scope and objective of the financial statement, and accordingly, by the 4.4.4 Comparison with Subsequent Disclosures—Subsequent disclosures that convey different information regarding the extent or magnitude of the reporting entity's exposures should not be construed as indicating the initial disclosures were inappropriate or incorrect. Disclosures shall be evaluated on the reasonableness of judgments and inquiries made at the time and under the circumstances in which they were made. Subsequent disclosures should not be considered valid standards to judge the appropriateness of any prior disclosure based on hindsight, new information, use of developing analytical techniques, or other factors. However, information on trends may be of value to a user of 4.4.5 Not Exhaustive—Appropriate disclosure does not necessarily mean an exhaustive disclosure; discretion and professional judgment is used by estimators, auditors, and the reporting entity's management in setting limits on the preparation cost, materiality, and volume of information worth disclosing as environmental liabilities.

4.4.6 Assessment of Risk—As the reporting entity becomes aware of an environmental liability, the condition or issue should be evaluated to assess the actual or potential risk to human health and environment and resources. The degree of risk is evaluated in context of the current regulatory environment, an understanding of the specifics of the condition or issue, potential future uses, and asset retirement obligations.

4.4.7 Improved Capital Stewardship—Disclosure, along with the preceding steps of recognition, measurement, and presentation, provides context for environmental liabilities and may improve the defensible allocation of capital to resolving those liabilities as efficiently as possible. Over time, an entity may find it valuable or even essential to demonstrate leadership in cost efficiency for understanding, controlling, preventing, and reducing environmental liabilities. The need for intermittent internal presentations may transform into the need for regular public disclosures as an entity acquires environmentally impaired assets or other environmental liabilities. An entity may prefer to make the ongoing investment in competent and continuous data collection and interpretation to draw internal managerial attention toward measuring and ensuring progress in discharging the liabilities as efficiently as possible.