Cost Associated with mothballing a nuclear power plant at the end of its useful life, approx 20 yrs in the future, will be paid by the utility company at the end of the 20 years period. When should the expense be recognized for this expenditure? Current utility users receive the benefit of this plant. Do accounting rules require them to pay the cost in terms of increased utility rates by including the expense of the future mothballing in their rates, or should the expense be delayed for 20 years, until the cash is actually paid out?

1. How should an Accountant apply the principles of Utilitarianism to decide how this expense should be recorded?