Question

Why are accounting principles different for Municipal Solid Waste Landfills

Answer 1

The term municipal refers to the primary type of solid waste received by the landfill, and not its ownership. The term municipal solid waste landfill can vary from state to state, thus FCA (Full Cost Accounting) principles may also differ from current municipal accounting and reporting practices that address different audiences and motives. For the majority part, local government financial statements (inclusive of enterprise fund accounting) are not using the accrual basis of accounting and focus on the flow of economic resources , which are cornerstones of FCA. Thus, the principles of accounting are different for Municipal Solid Waste Landfills