International GAAP 2013: Generally Accepted Accounting Principles under International Financial Reporting Standards

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 (the grantor)

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 Payments made by a service concession operator

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 of the intangible asset

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

4.7 Accounting for contractual payments to be made by an operator to a grantor

4.7.1 Accounting for contractual payments under the financial asset model

4.7.2 Accounting for contractual payments under ...