Question

On fund-based financial statements, the costs of operating a solid waste landfill are

		a.Accrued on a pro-rated basis for each period based on the estimated costs.
		b.Accrued and amortized over the expected useful life of the landfill.
		c.Accrued in full when the costs can be estimated.
		d.Accrued in full when the costs can be estimated.
		e.Not recognized until the government spends the costs.

Answer 1

For mswlfs that use proprietary fund accounting and reporting, a portion of the estimated total current cost of mswlf closure and postclosure care is required to be recognized as an expense and as a liability in each period that the mswlf accepts solid waste. Recognition should begin on the date the mswlf begins accepting solid waste, continue in each period that it accepts waste, and be completed by the time it stops accepting waste.

So option b is correct that accrued and amortized over the expected useful life of the landfill