What is the accounting treatment of post-closure monitoring and inspection costs for landfill sites?

The Public Sector Accounting Forum (PSAF) discussed the impact of post-closure monitoring and inspection costs on a landfill site rehabilitation provision.

The PSAF noted the following:

• The Minimum Requirements for Waste Disposal by Landfill (Minimum Requirements) requires entities to perform certain post-monitoring and inspection costs, with some exceptions. These costs should be included in the provision.
• Where an entity’s license conditions are silent on these costs, an entity must still comply with the Minimum Requirements, and consider whether they have a constructive obligation to incur these costs.
• An entity’s license conditions may stipulate a longer or shorter period of post-monitoring and inspection than that stipulated in the Minimum Requirements. The license conditions inform the calculation of the provision.

Access the Guideline on Accounting for Landfill Sites here. The Guideline is effective 1 April 2023 and early application is encouraged.