The amount of expense and liability to be reported each period for the closure and postclosure costs of a municipal solid waste landfill (MSWLF) is proportional to the amount of landfill capacity used during the period.

Question

Quizplus · Accepted Answer

According to the Generally Accepted Accounting Principles (GAAP) and Financial Accounting Standards Board (FASB), the amount of expense and liability to be reported for the closure and postclosure costs of a municipal solid waste landfill (MSWLF) should be proportional to the amount of landfill capacity used during the period. This is because the cost of closure and postclosure activities is directly related to the amount of waste deposited in the landfill, which affects the amount of space that needs to be closed and maintained after the landfill is closed. Therefore, the more waste deposited in the landfill, the higher the closure and postclosure costs will be, and this should be reflected in the financial statements.

The Amount of Expense and Liability to Be Reported Each