Liability Estimating and Reporting

The Program

WSP Environment & Energy has simplified the process of estimating and reporting environmental liability for multiple sites. Our program makes it easier to estimate, coordinate, and compile environmental liabilities, satisfying the needs of accountants and environmental managers.

The Need

Securities and Exchange Commission (SEC) regulations require corporations to:

• report and maintain a financial reserve for known environmental liabilities
• disclose environmental liabilities for conditions that could potentially occur
  

The Process

WSP Environment & Energy's program uses two basic forms: one for inputting cost estimates for environmental liabilities by task and the other explaining how the estimates were derived.

• the forms require estimates for known and potential environmental liabilities
• the known liability estimates serve as the basis for corporate environmental reserves
• the potential liability estimates serve as the basis for the corporate environmental disclosure
• WSP Environment & Energy's program automatically downloads financial information from multiple sites into a single report
• the program automatically discounts future expenditures to reflect the present worth of the liabilities
• WSP Environment & Energy's program provides technical support and is not intended to be accounting or legal advice.

The Advantages

A uniform process ensures consistency. A companion document to the forms explains the cost estimating process. Its use ensures that reserve estimates for multiple sites follow the same protocol, regardless of who makes the estimate.

The program is tailored to fit each client’s needs. Database applications reconfigure the information into customized formats. The liabilities can be organized by division, geography, year, or cost category (e.g., capitalized vs. non-capitalized expenditures), as desired.

Corporations tend to compile reserve estimates inefficiently. WSP Environment & Energy's program simplifies the process and, thus, saves time and money.

Professionals often estimate liabilities without knowledge of the SEC requirements. WSP Environment & Energy's program provides guidance on the technical aspects of accounting rules.

The program facilitates review of the estimates by an independent, third party. This ensures that the remedial strategies are sound and the estimates are technically supported. WSP Environment & Energy can provide this review.

The Result

All of a corporation’s liability estimates are compiled into a single easy-to-use database tailored to fit a company’s reporting needs.

• The program cost is reasonable and can result in significant corporate savings.
• The information in the forms can be used to check the accuracy of the liability estimates. This can sometimes result in technical justification to reverse accruals.
• The information can also be used as a management tool to track the progress of multiple remediation systems and identify poorly performing projects.