At JCH, we recognize the increasing importance of proper financial disclosure and reporting of environmental liabilities and asset retirement obligations (ARO’s). Recently enacted accounting standards and soon to be enabled standards have raised the bar for reporting companies.

In particular, accuracy of disclosure during acquisitions and divestitures is more critical than ever. Future financial performance and potential exit strategies can be affected if environmental liabilities and AROs are not completely understood and accounted for.

For acquisitions, in addition to conducting traditional environmental due diligence, it is critical to ensure that the acquired company has properly disclosed its environmental liabilities and AROs.

For divestitures, ensuring that the buyer has sufficient technical, financial and development resources is important. It is also important that the buyer be able to demonstrate the proper financial assurance to deal with AROs and known and unknown environmental liabilities.

At JCH, we specialize in understanding the importance of environmental liabilities and AROs in a transaction. We combine our risk management and insurance knowledge with our ability to network within our client base to provide access to technical, development, financial, legal and accounting resources when necessary.

Providing solutions for financial reporting of environmental liabilities and AROs, it’s what we do well.