Briefly explain the following terms:

Environmental remediation liability

Superfund

Potentially responsible parties

Are the environmental remediation liabilities a type of contingent liability?

Are the rules governing the accrual of environmental remedial liabilities the same as those governing the accrual of other contingent liabilities?

Based on your review of the literature, respond to the following questions.

What factors do firms consider in the estimation of environmental remediation liabilities?

What does an entity do if it can only reasonably estimate some of the components of the liability?

What if the entity can only estimate a range for the obligation?

What if there are uncertainties about the share of the obligation the entity will bear?