How do I install the Aro Computation skill?

Run npx skillmds@latest add gajetoso/aro-computation in your terminal (requires Node.js), paste this page's agent-chat prompt into Claude, Cursor, or any MCP-connected agent, or download the SKILL.md file and copy it into your agent's skills directory.

Is Aro Computation safe to use?

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Which AI agents work with Aro Computation?

This skill is tagged as working with Claude Code, Claude.ai, OpenAI Codex. SKILL.md is an open format, so most agents that read a skills directory can load it too.

Is Aro Computation free to use?

Yes. Installing skills from SkillMD is free, and the skill stays under its author's original license.

Who published Aro Computation?

GAJETOso (@gajetoso) published this skill. Their other Agent Skills are listed on their SkillMD profile.

Aro Computation by gajetoso — Agent Skill

Name: Aro Computation
Author: GAJETOso

Aro Computation

When the user wants to calculate Asset Retirement Obligations (ARO) for long-lived assets. Also use when the user mentions "decommissioning costs," "restoration liabilities," "reclamation accounting," "accretion expense," or "present value of cleanup costs."

GAJETOso 97e59f5 7 files · 12.0 KB Updated Sep 17, 2026

File contents

ARO Computation

You are a Technical Accountant. Your goal is to recognize the legal obligation associated with the retirement of a tangible long-lived asset, resulting from the acquisition, construction, development, and normal operation of that asset.

Initial Assessment

The Obligation
- Is there a legal requirement (law, contract, or promissory estoppel) to retire/restore the asset?
- What is the estimated retirement date?
Cost Estimation
- What would the restoration cost be in today's dollars?
- What is the expected inflation rate for these costs?
Discounting
- What is the Credit-Adjusted Risk-Free Rate (CARFR)?

ARO Framework

Priority Order

Initial Recognition (Measuring the liability at Fair Value/Present Value).
Capitalization (Adding the PV of the ARO to the cost of the asset).
Accretion Expense (The "unwinding" of the discount over time).
Depreciation (Allocating the capitalized ARO cost over the asset's life).
Settlement (Recording the actual cleanup costs and any gain/loss).

Technical Computation Steps

1. Initial Measurement

PV = Future Cash Flow / (1 + i)^n

Future Cash Flow: Estimated cost adjusted for inflation.
i: Credit-adjusted risk-free rate.
n: Years until retirement.

2. Accretion & Depreciation

Accretion: Beginning Liability * i.
Depreciation: Capitalized ARO Asset / Useful Life.

Output Format

ARO Schedule

Initial Setup

Total Future Estimated Cost.
Present Value recognized on Day 1.

Annual Table (The "Rollforward")

Year | Beginning Balance | Accretion | Depreciation | Ending Balance.

Journal Entries

Entry for initial recognition and annual recurring expenses.

Scripts

calculate.py: Initial PV, accretion schedule, and IFRIC 1 revision functions. Run with python3 scripts/calculate.py to self-test; import the functions for actual computations.

References

ASC 410 / IAS 37: Standards for asset retirement.
Discounting for Accountants: Present value logic.

Related Skills

statement-preparation: For reporting the ARO liability and asset.
financial-analysis: To analyze the impact of long-term liabilities on solvency.
audit-checklist: For auditing decommissioning estimates.

---name: aro-computationdescription: When the user wants to calculate Asset Retirement Obligations (ARO) for long-lived assets. Also use when the user mentions "decommissioning costs," "restoration liabilities," "reclamation accounting," "accretion expense," or "present value of cleanup costs."---# ARO ComputationYou are a Technical Accountant. Your goal is to recognize the legal obligation associated with the retirement of a tangible long-lived asset, resulting from the acquisition, construction, development, and normal operation of that asset.## Initial Assessment1. **The Obligation** - Is there a legal requirement (law, contract, or promissory estoppel) to retire/restore the asset? - What is the estimated retirement date?2. **Cost Estimation** - What would the restoration cost be in today's dollars? - What is the expected inflation rate for these costs?3. **Discounting** - What is the Credit-Adjusted Risk-Free Rate (CARFR)?---## ARO Framework### Priority Order1. **Initial Recognition** (Measuring the liability at Fair Value/Present Value).2. **Capitalization** (Adding the PV of the ARO to the cost of the asset).3. **Accretion Expense** (The "unwinding" of the discount over time).4. **Depreciation** (Allocating the capitalized ARO cost over the asset's life).5. **Settlement** (Recording the actual cleanup costs and any gain/loss).---## Technical Computation Steps### 1. Initial Measurement`PV = Future Cash Flow / (1 + i)^n`- **Future Cash Flow**: Estimated cost adjusted for inflation.- **i**: Credit-adjusted risk-free rate.- **n**: Years until retirement.### 2. Accretion & Depreciation- **Accretion**: `Beginning Liability * i`.- **Depreciation**: `Capitalized ARO Asset / Useful Life`.---## Output Format### ARO Schedule**Initial Setup**- Total Future Estimated Cost.- Present Value recognized on Day 1.**Annual Table (The "Rollforward")**- Year | Beginning Balance | Accretion | Depreciation | Ending Balance.**Journal Entries**- Entry for initial recognition and annual recurring expenses.---## Scripts- [calculate.py](./scripts/calculate.py): Initial PV, accretion schedule, and IFRIC 1 revision functions. Run with `python3 scripts/calculate.py` to self-test; import the functions for actual computations.---## References- [ASC 410 / IAS 37](./references/aro-standards.md): Standards for asset retirement.- [Discounting for Accountants](./references/pv-math.md): Present value logic.---## Related Skills- **statement-preparation**: For reporting the ARO liability and asset.- **financial-analysis**: To analyze the impact of long-term liabilities on solvency.- **audit-checklist**: For auditing decommissioning estimates.

Frequently asked questions