This session was educational and no decisions were taken.
IFRIC staff presented an update on IFRIC's project on service concession arrangements. Staff outlined how the IFRIC intends to deal with the following issues raised by commentators:
- Scope of the interpretations.
- Partly-regulated assets.
- Accounting by the grantor.
- Accounting for sale and lease back arrangements.
- Dividing line between the intangible asset and the financial asset model.
- Double recognition of revenue under the intangible asset model.
One Board member noted that the IFRIC should be described as 'heroic' for exposing the intangible asset model in IFRIC D14 including the double counting of revenue, which that Board member considered to be a direct function of the correct application of IFRS.