GASB Statement No. 18 Revisited: The Relationship between Landfill Disclosure and Municipal Bond Costs

• In Event: Governmental Accounting Disclosures

Abstract

In this paper, we examine measurement and disclosure issues for municipal county governments with respect to landfill closure and postclosure costs and liabilities as prescribed by
GASB Statement No. 18, Accounting for Municipal Solid Waste Landfill Closure and Post- closure Care Costs (Issued 8/93), for the period 2005 to 2007. We employ content analysis to assess the quality and quantity of disclosure in accordance with GASB Statement 18 provisions. We find that our sample of 131 counties across 30 states complied with the provisions of Statement 18 for recognition of the landfill closure/postclosure expenses and liabilities. We also find that better landfill disclosure levels are significantly associated with the county’s location in a “GAAP” regulated state, and are also dependent on the county’s receipt of intergovernmental aid. Finally, we identify a subgroup of counties from our initial sample with newly issued debt, although did not find a significant relationship between better disclosure of landfill obligations
and municipal debt costs

Authors

• Kathryn J Jervis, University of Rhode Island

• Allan Graham, Zayed University