In accounting for closure and post-closure landfill costs in an enterprise fund, a government does not necessarily have to "fund" the costs during the landfill's useful life; it merely has to report both an expense and a liability for them.

Question

Quizplus · Accepted Answer

In accounting for closure and post-closure landfill costs, a government using an enterprise fund must recognize the costs as an expense and a liability over the period the landfill is in operation. This does not mean the government has to set aside actual funds (cash) for these costs during the landfill's useful life, but it must account for the future expense and related liability in its financial statements.

In Accounting for Closure and Post-Closure Landfill Costs in an Enterprise