IFRIC 12 on service concession arrangements
Dec 01, 2006
The International Financial Reporting Interpretations Committee (IFRIC) has issued Interpretation IFRIC 12 'Service Concession Arrangements'.
Service concessions are arrangements whereby a government or other public sector entity grants contracts for the supply of public services – such as roads, airports, prisons and energy and water supply and distribution facilities – to private sector operators. Control of the assets remains in public hands, but the private sector operator is responsible for construction activities, as well as for operating and maintaining the public sector infrastructure.
IFRIC 12 addresses how service concession operators should apply existing IFRSs to account for the obligations they undertake and rights they receive in service concession arrangements.
Click for Press Release (PDF 52k). IFRIC 12 is effective for annual periods beginning on or after 1 January 2008.
|A brief summary of IFRIC 12|
IFRIC 12 draws a distinction between two types of service concession arrangement: