New Practice for Purchase Price Allocation of Environmental Obligations following Transaction Completion
1. Scope
standard practice to state the post-transaction tasks needed in a PURCHASER PRICE ALLOCATION analysis of environmental obligations (ASC 410-30 and GASB 83, among other accounting citations). The practice will enable non-financial specialists to prepare a mandatory and time-limited process specified in accounting standards (citation ASC 805 among others), as well as conditions under which a purchase price allocation valuation of environmental liabilities will be revisited or changed. While ASTM offers extensive standards and training around pre-transaction analysis of environmental liabilities (“due diligence”), the post transaction process – purchase price allocation – is often skipped in the interest of time and preservation of resources.
Keywords
purchase price allocation; post-transaction; environmental obligations
Rationale
Establish a standard practice for determining the costs associated with post-transaction environmental liabilities that must be disclosed in a timely manner
The title and scope are in draft form and are under development within this ASTM Committee.
Work Item Status
Date Initiated: 10-29-2025
Technical Contact: John Rosengard