What is the impact of buy-back arrangements on the rehabilitation of a landfill site?

The Public Sector Accounting Forum(PSAF) noted that arrangements to buy waste from landfill sites for recycling is becoming more prominent. The following potential accounting implications were noted:

• The removal of waste may change the configuration or shape of a landfill site, especially when it is not done orderly and controlled. The removal may impact the area where rehabilitation is needed, and the provision may increase or decrease as a result.
• The assessment of potential changes to the provision and related asset is often done as a desktop exercise. It may be necessary for engineers to inspect the site to determine if any changes to previous assumptions are required, as they may no longer be valid.