What must be done annually regarding landfill capacity costs?

The appropriate action regarding landfill capacity costs on an annual basis is to account for changes in cost estimates. This is critical as environmental and operational conditions can change over time, which may impact the projection of costs related to maintaining or expanding a landfill. For instance, costs may increase due to regulatory changes, increased operational expenses, or modifications required to meet environmental standards.

Recognizing and adjusting for these changes ensures that the financial statements accurately reflect the current obligations and capacity of the landfill. This financial reporting practice aligns with the principles of transparency and accountability in governmental accounting, ensuring that stakeholders have a realistic view of the fiscal responsibilities associated with landfill operations.

Other options suggest approaches that are important in financial management but do not address the specific need to update the estimated costs associated with landfill capacity. For example, while revising for market conditions and securing additional funding may be necessary actions in certain circumstances, they do not directly pertain to the annual requirement of adjusting cost estimates. Recording depreciation might be relevant, but it pertains more to asset management rather than ongoing cost adjustments specifically for landfill capacity.