GASB Issues Three Final Pronouncements
In September 1993, the GASB issued final pronouncements on three diverse topics. The issuance of these statements, as well as those to be issued in the near future, represents the outcome of an approach by GASB to "fast-track" statements on finite, less controversial practice issues while dealing with the big issues of the reporting model and the measurement focus and basis of accounting.
Statement No. 18, which deals with accounting for municipal solid waste landfill closure and postclosure costs, is effective for financial statements for periods beginning after June 15, 1993. The statement stems from rules published in 1991 by the U.S. Environmental Protection Agency that obligate municipal solid waste landfill owners to perform certain closing functions and postclosure monitoring and maintenance functions as a condition of operating landfills. Statement No. 18 requires that the total current cost of both closure and postclosure care, including the cost of equipment to be installed and facilities expected to be constructed; the cost of final cover to be applied; and the cost of monitoring and maintaining the landfill during the postclosure period should be recognized while the landfill is being operated. Initial calculations of total current cost are required to be adjusted annually for the affects of inflation, deflation, changes in technology, and changes in laws and regulations.
Statement No. 19, the governmental college and university omnibus statement, establishes standards for colleges and universities that follow the AICPA college guide model in accordance with GASB Statement No. …