Wiley GAAP for Governments 2013: Interpretation and Application of Generally Accepted Accounting Principles for State and Local Governments

CHAPTER 16

LANDFILL CLOSURE AND POSTCLOSURE CARE COSTS

Introduction

Applicability

Municipal Solid Waste Landfills

Estimated Total Current Cost of Closure and Postclosure Care

Recording Closure and Postclosure Care Costs—Proprietary Funds and Government-Wide Financial Statements

Recording Closure and Postclosure Care Costs—Governmental Funds

Reporting Changes in Estimates

Accounting for Assets Placed in Trust

Responsibility for Landfill Closure and Postclosure Care Assumed by Another Entity

Disclosures

Summary

INTRODUCTION

The GASB issued Statement 18 (GASBS 18), Accounting for Municipal Solid Waste Landfill Closure and Postclosure Care Costs, to address a very specific issue, the accounting and financial reporting for landfill closure and postclosure care costs. However, since many governmental entities operate these types of facilities, GASBS 18 affected many governmental entities.

GASBS 18 was issued in response to requirements promulgated by the United States Environmental Protection Agency (EPA). Landfill operators became obligated to meet certain requirements of the EPA as to closure and postclosure requirements. The postclosure requirements extend for a period of thirty years. Landfill operators are also subject to closure and postclosure care costs resulting from state and local laws and regulations. The GASB issued GASBS 18 to require governments to recognize the liability for these closure and postclosure conditions as the landfill is being used, so that by the time the ...