Sometimes, you discover that an ARO you entered on the system should never have been put on. You may discover that there is no legal responsibilty to remediate, or you mistakenly entered the same information twice. If you simply delete the ARO from the database after running reports that included it, your future reports will not balance with those already run.
The solution is to terminate the ARO with a Reversal early termination type, dated in the current reporting period. This will cause all previously booked activity to be reversed, so that the life to date effect of the ARO is zero, but the beginning balances of your current reports will match the ending balances of the reports previously run. If, for example, you previously booked $100 in accretion and $50 in depreciation, the current report will show a $100 credit for accretion and $50 credit for depreciation, with similar reversing entries in all balance sheet accounts.