Municipal solid waste landfills, when accounted for as proprietary funds, record a liability for closure and post-closure care costs; recording expenses on a units of production basis.

Question

Quizplus · Accepted Answer

GASB requires that certain postclosure costs be estimated and accrued during the period the landfill receives solid waste. GASB requires that a portion of future estimated costs be charged as an expense and a liability of the landfill operation on a units-of-production method as waste is accepted.

Municipal Solid Waste Landfills, When Accounted for as Proprietary Funds