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International GAAP 2012: Generally Accepted Accounting Practice under International Financial Reporting Standards by Ernst & Young

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Chapter 28

Service Concession Arrangements

1 Introduction

1.1 The Interpretations Committee’s approach to accounting for service concessions

2 Scope of Ifric 12

2.1 Public-to-private service concession arrangements within scope

2.1.1 Private sector entity (the operator)

2.1.2 Public sector body

2.1.3 Service concession arrangement (‘SCA’)

2.1.4 Agent type arrangements

2.1.5 A contract with the grantor

2.2 IFRIC 4 and IFRIC 12: outsourcing arrangements and SCAs

3 The Control Model

3.1 Regulation of services

3.2 Control of the residual interest

3.3 Assets within scope

3.3.1 Leases relating to assets used in concessions

3.3.2 Previously held assets used for the concession

3.4 Partially regulated assets

4 Accounting for the Infrastructure Asset: the Financial Asset and Intangible Asset Models

4.1 Consideration for services provided and the choice between the two models

4.1.1 Allocating the consideration

4.1.2 Determining the accounting model

4.2 The financial asset model

4.3 The intangible asset model

4.3.1 Amortisation

4.3.2 Impairment during the construction phase

4.4 Revenue recognition implications of the two models

4.5 ‘Bifurcation’ – single arrangements that contain both financial and intangible assets

4.6 Accounting for residual interests

5 Revenue and Expenditure During the Operations Phase of the Concession Agreement

5.1 Additional construction and upgrade services

5.1.1 Subsequent construction services that are part of the initial infrastructure asset

5.1.2 Subsequent construction ...

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