ASTM E2173-01

Standard Guide for Disclosure of Environmental Liabilities

SCOPE
1.1 Purpose—The purpose of this guide is to provide a series of options or instructions consistent with good commercial and customary practice in the United States for environmental liability disclosures accompanying audited and unaudited financial statements. This guide is intended to supplement and be consistent with Generally Accepted Accounting Principles (GAAP).
1.2 Objectives—The objectives of this guide are to determine the conditions warranting disclosure and the content of appropriate disclosure.

General Information

• Status: Historical
• Publication Date: 09-Dec-2001
• ICS: 13.020.10 - Environmental management
• Technical Committee: E50 - Environmental Assessment, Risk Management and Corrective Action
• Drafting Committee: E50.05 - Environmental Risk Management

Relations

• Replaced By: ASTM E2173-07 - Standard Guide for Disclosure of Environmental Liabilities
• Effective Date: 15-Mar-2007
• Referred By: ASTM E3228-19 - Standard Guide for Environmental Knowledge Management
• Effective Date: 10-Dec-2001
• Referred By: ASTM E3123-18 - Standard Guide for Recognition and Derecognition of Environmental Liabilities
• Effective Date: 10-Dec-2001
• Referred By: ASTM E2718-21 - Standard Guide for Financial Disclosures Attributed to Climate Change
• Effective Date: 10-Dec-2001
• Referred By: ASTM E2137-22 - Standard Guide for Estimating Monetary Costs and Liabilities for Environmental Matters
• Effective Date: 10-Dec-2001
• Referred By: ASTM E1903-19 - Standard Practice for Environmental Site Assessments: Phase II Environmental Site Assessment Process
• Effective Date: 10-Dec-2001
• Referred By: ASTM E3358-23a - Standard Guide for Per- and Polyfluoroalkyl Substances Site Screening and Initial Characterization
• Effective Date: 10-Dec-2001

Standards Content (Sample)

NOTICE: This standard has either been superseded and replaced by a new version or withdrawn.
Contact ASTM International (www.astm.org) for the latest information
Designation:E2173–01
Standard Guide for
1
Disclosure of Environmental Liabilities
This standard is issued under the fixed designation E 2173; the number immediately following the designation indicates the year of
original adoption or, in the case of revision, the year of last revision. A number in parentheses indicates the year of last reapproval. A
superscript epsilon (e) indicates an editorial change since the last revision or reapproval.
1. Scope 3.1.2 CERCLIS—Comprehensive Environmental Response,
Compensation and Liability Information System, the list of
1.1 Purpose—The purpose of this guide is to provide a
sites compiled by the EPA that the EPA has investigated or is
series of options or instructions consistent with good commer-
currently investigating for potential hazardous substance con-
cial and customary practice in the United States for environ-
tamination for possible inclusion on the National Priorities
mental liability disclosures accompanying audited and unau-
List.
ditedfinancialstatements.Thisguideisintendedtosupplement
3.1.3 CFR—Code of Federal Regulations.
and be consistent with Generally Accepted Accounting Prin-
2 3.1.4 claim—a demand for payment.
ciples (GAAP).
3.1.5 environmental liabilities—accrued liabilities and loss
1.2 Objectives—The objectives of this guide are to deter-
contingencies associated with conditions that present an unac-
mine the conditions warranting disclosure and the content of
ceptable risk of harm to public health or the environment and
appropriate disclosure.
that would be the subject of an enforcement action or other
2. Referenced Documents
legal action.
3.1.6 EPA—United States Environmental Protection
2.1 ASTM Standards:
Agency.
D 5746 Classification of Environmental Condition of Prop-
3.1.7 Federal Register, (FR)—publication of the United
erty Area Types for Defense Base Closure and Realign-
3
States government published daily (except for federal holidays
ment Facilities
and weekends) containing all proposed and final regulations
E 1527 Practice for Environmental SiteAssessments: Phase
3
and some other activities of the federal government. When
I Environmental Site Assessment Process
regulations become final, they are included in the Code of
E 1739 Guide for Risk Based Corrective Action Applied at
3
Federal Regulations (CFR), as well as published in the Federal
Petroleum Release Sites
Register.
E 2137 Guide for Estimating Monetary Costs and Liabili-
3
3.1.8 financial statements—include, but are not limited to,
ties for Environmental Matters
4
statements associated with shareholder reporting, loans, merg-
2.2 EPA Directives:
ers, acquisitions, or divestitures.
United States Environmental Protection Agency, OSWER
3.1.9 materiality—the significance of an item to users of a
Directive 9610.17: Use of Risk-Based Decision-Making
financial statement that considers all relevant and surrounding
in UST Corrective Action Programs
circumstances. A material item is one that its omission or
3. Terminology
misstatement is of such a magnitude in the surrounding
circumstances that either the judgment of a reasonable person
3.1 Definitions of Terms Specific to This Standard:
relying on the financial statement would have been changed or
3.1.1 CERCLA—Comprehensive Environmental Response,
influenced by its inclusion or correction, or there is a substan-
Compensation and LiabilityAct of 1980 (as amended, 42 USC
tial likelihood that the item, after assessing the inferences, and
Section 9601 et seq. ).
their significance, drawn from the given set of facts associated
with the financial statement, would be viewed as significantly
1
ThisguideisunderthejurisdictionofASTMCommitteeE50onEnvironmental
altering the information made available to the investor or
Assessment and is the direct responsibility of Subcommittee E50.05 on Wetland
shareholder. Relevant sources of information and references
Ecosystems.
are included in Appendix X2.
Current edition approved Dec. 10, 2001. Published February 2002.
2
This guide alone does not satisfy or include all disclosure requirements under 3.1.10 National Priorities List (NPL)—a list compiled by
GAAP, SEC, or any other agency or regulatory body. Appendix X1 provides some
the EPA pursuant to CERCLA 42 USC § 9605(a)(8)(B) of
examples of where such requirements are contained.
properties with the highest priority for cleanup pursuant to the
3
Annual Book of ASTM Standards, Vol 11.04.
4
EPA’s Hazard Ranking System. See 40 CFR Part 300.
AvailablefromtheUnitedStatesEnvironmentalProtectionAgency(U.S.EPA),
Ariel Rios Building, 1200 Pennsylvania Ave., N.W., Washington, DC 20460.
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959, United States.
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E2173
3.1.11 Potentially Responsible Party (PRP)—any indi- techni
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