What Is A Service Concession Agreement

For more information on service concessions, see Chapter 13 of PwC`s Guide “Revenue from Customer Contracts” and listen to our podcast. The required information shall be provided individually for each service concession contract or in aggregate form for each category of service concession agreements. What is considered a service concession contract under U.S. GAAP generally complies with international accounting standards. However, accounting can be very different. For more information on the differences, see Chapter 15 of PwC`s IFRS and US GAAP Guide: Similarities and Differences. Click here for IFRIC 12 Service Concession Arrangements – A pocket practical guide (PDF 241k, February 2011, 59 pages). IPSAS 32 provides for the recognition, valuation and disclosure by the licensor of service concession assets and related liabilities, income and expenses. The criteria of IFRIC 12 Service Concession Contracts to determine whether the operator controlled the asset used in a service concession contract are also used in IPSAS 32 to assess whether the licensor controlled the asset. This approach minimizes the possibility that neither the operator nor the licensor will recognise the assets of the service concession. In a typical service concession agreement, an operating entity operates and maintains, for a specified period of time, the grantor`s infrastructure used to provide a public service.

In return, the operating entity may receive payments from the grantor to provide those services. IFRIC 12 Service Concession Agreement Guide In February 2011, deloitte`s global IFRS office published IFRIC 12 Service Concession Agreements – A Practical Handheld Guide. contract for the construction of the road; The type of contract is a public-private service concession contract. Infrastructure is not recognised as tangible assets of the operator, as the contractual service contract does not confer any right of control on the operator. IFRIC 12 does not deal with government accounting for service concession contracts. IFRs are not designed for charitable activities in the private or public sector. However, the International Public Sector Accounting Standards Board (IPSASB) has launched its own draft service concession agreement, which will seriously consider accounting by grantors. .