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This research will discuss the recognition of asset abandonment and site restoration or commonly known as ARO (Asset Retirement Obligation) in the upstream oil and gas company. The purpose of this research is to be able to provide an overview of the methods that can be used by companies in calculating ARO that must be paid by the company at the end of the contract period. The formulation of the problem in this research is which method is used by the company in determining the amount of asset abandonment and site restoration or ARO that is appropriate to overcome the potential problems that arise at the end of the contract period. This research is carried out by using a mixed method in analyzing the findings, so it will find the in-depth findings which will be useful to assist the companys management in making decisions. Signal theory is a theory that will be chosen in this research. Where this research-s purpose is indeed chosen to be able to provide reliable information for decision making. This research will use three stages of analysis, such as descriptive analysis, content analysis, and constant comparative analysis in linking findings to asset abandonment and site restoration as stipulated in Indonesian GAAP 57. Based on the results of this research it found that the recognition of asset abandonment and site restoration carried out according to regulations apply. While company uses the method of calculating liabilities based on future values that is continually calculate in present value.