Question

Why does the operation of a solid waste landfill create reporting concerns for a local government? A landfill is scheduled to be filled to capacity gradually over a 10-year period. However, at the end of the first year of operations, the landfill is only 7 percent filled. How much liability for closure and postclosure costs should be recognized on government-wide financial statements? How much liability should be recognized on fund financial statements assuming that the land- fill is recorded in an enterprise fund? How much liability should be recognized on fund financial statements assuming that the landfill is recorded in the general fund?

Answer 1

WASTE LANDFILL IS THE AREA THAT RECEIVES WASTE FROM HOUSEHOLDS OR THE PLACE OF DUMPING PUBLIC WASTE. IT IS THE RESPONSIBILITY OF TH GOVERNMENT TO SET UP SUCH LANDFILL TO CONCENTRATE WASTE IN A ARTICULAR AREA IN ORDER TO ACHIEVE CLEAN AND GREEN ENVIRONMENT .

FOR THIS PURPOSE LOCAL GOVERNMENT MAY TAKE INITIATIVE TO SET UP LANDFILLS .

COSTS INCLUDING PURCHASE OF LAND ,PURCHASE AND INSTALLATION OF ASSETS AND OPERATING EXPENSES. APART FROM THIS MANY EXTERNAL COSTS INCLUDING PHYSICAL MANPOWER AND SOCIAL COSTS. ONE OF THE IMPORTANT POINT SHOULD TAKE INTO CONSIDERATION IS THE DEPRECIATION ....

IN THE ABOVE CASE THE CAPACITY IS NOT PROPERLY UTILIZED. LANDFILL SET UP FOR TEN YEARS...AT LEAST 10% SHOULD BE FILLED IN EACH YEARS... OTHERWISE THE COST OF OPERATING THE LANDFILL RISEN UP AND MAY LEAD TO CLOSURE .

CLOSURE AND POST CLOSURE EXPENSES IS HIGH IN SOME CASES.BECAUSE THE LANDFILL SHOULD BE CLOSED WITH PERFECT PROTECTION OF WASTE.. OTHERWISE THE DANGEROUS BACTERIA AND VIRUSES MAY SPREAD TO ENVIRONMENT. SO PROTECTIVE COVER SHOULD BE SAFE.

ALSO POST CLOSURE MAINTENANCE IS ANOTHER PROBLEM..THEY SHOULD ENSURE THAT THE WASTES NEVER LEAKS THROUGH THE SOIL.BECAUSE IT MAY LEAD TO WATER POLLUTION ,AIR POLLUTION ETC...........

USUALLY LANDFILLS ARE CREATED FROM GENERAL FUND OF THE GOVERNMENT . IT IS NO PROFIT NO LOSS FUND.WHICH MEANS THAT THE GOVERNMENT UTILIZE MONEY FOR DEVELOPMENT PURPOSE .SO THE LIABILITY SHALL BE LESS IN CASE OF GENERAL FUND

BUT IN THE CASE OF ENTERPRISE FUND LIABILITY MAY BE HIGH ....

THANK YOU