VIZIO Consulting Inc.

Something New Is Coming

Something New Is Coming

In 2018, the Public Sector Accounting Boarding approved a new accounting standard entitled PS3280. However, due to COVID – 19,  2022 is the first fiscal year in which this will come into effect and all public sector bodies will have to consider the retirement of tangible capital assets which were previously not part of their accounting scope, for example, retiring building infected by asbestos.

How To Prepare for the Change

Public sector bodies are now working to prepare themselves for the legal implications that will come with the implementation of Asset Retirement Obligation standards. Like any other change, there will be many requirements to fulfill before these organizations can successfully implement this obligation. However, the long-term benefits show that, once implemented, there are several key benefits of having an ARO Plan in place:

  1. Completeness of liabilities: liability planning is critical for future financial planning and budgeting
  2. Legal Obligations: there is no legal unclarity in the future use of an ARO item
  3. Completeness of Assets: a clear view of asset management shows how effectively each asset has been utilized
  4. Technical Expertise: having advice from a technical SME provides insight on asset management
  5. Financing Repercussions: it is important to understand the life of an asset to be able to match the cost over the period the benefit was received
  6. Environment, Social, Governance Implications: Contamination by hazardous material can have long term damaging effects on the environment. It has now become more important than ever that proper disposal processes are in place for health and environment threatening materials.

VIZIO’s Asset Retirement Obligation Management Solution Summary

VIZIO’s ARO Solution is carefully designed to serve as two solutions under a single umbrella. You can perform Asset Obligation Planning and Asset Retirement Planning associated with the obligation.

Asset Obligation


VIZIO’s Asset Retirement Obligation planning template is fully integrated within our Global CAPEX Planning as well as our OPEX Planning template if the funding is coming from OPEX.

Key Features of ARO Solution

CAPEX – Asset Retirement Obligation Planning

Highlights of VIZIO’s Capital Expense Planning Processes

CAPEX – Asset Replacement Planning

With VIZIO CAPEX Planning You Get

Operating Expense Planning (OPEX)

If you have questions, we would love to help!