Beefing up Depreciation Expense - a Q for the BP CPA Collective

[Ralph S.]

FAS 143 and FIN 47, from the Financial Accounting Standards Board (FASB) implemented a provision in 2005 that requires companies to recognize the future expenses of environmental cleanup of facilities (even if leased). As I read it, this would also apply to Residential properties owned if they contain LBP and/or asbestos. It applies whether or not those facilities are later sold and the liability is passed on.
So, why wouldn’t every owner of pre-78 residential property (LBP) or those with asbestos siding, or vermiculite insulation, be using this to increase their depreciation expense?
In essence, estimate the future environmental expense of disposing of the hazardous waste as an asset that depreciates. That’s the jist.
Here is the link to FIN 47
http://www.fasb.org/cs/BlobServer?blobcol=urldata&blobtable=MungoBlobs&blobkey=id&blobwhere=1175820929855&blobheader=application%2Fpdf
And other discussions on the topic
http://www.advancedenvironmentaldimensions.com/documents/EEA_FASBInterpretationNo47_4_24_07[1].pdf
http://www.cfo.com/article.cfm/5467027
http://www.pace.edu/finance-planning/sites/pace.edu.finance-planning/files/Policies_Procedures/Fixed_assests/FIN%2047%20Policy%20%26%20Procedure.pdf