Service concession arrangements
This IFRIC project considered how to apply IFRS and Interpretations to service concessions - arrangements under which an entity (the Concession Operator), by contract with a Concession Provider (usually a government), receives a right and incurs an obligation to provide public services.
The service concession arrangement often gives the Concession Operator the right to use specified tangible assets, intangible assets, and/or financial assets, in exchange for the Concession Operator committing to provide the services according to certain terms and conditions during the concession period, and, when applicable, committing to return at the end of the concession period the rights received at the beginning of the concession period and/or acquired during the concession period.
Examples of service concession arrangements involve water treatment and supply facilities, motorways, car parks, tunnels, bridges, airports and telecommunication networks. Examples of arrangements that are not service concession arrangements include an enterprise outsourcing the operation of its internal services (such as an employee cafeteria, building maintenance, and accounting or information technology functions).
Current status of the project
This project has been completed. IFRIC 12 Service Concession Arrangements was issued on 30 November 2006.
|3 March 2005||Three Draft Interpretations issued:
||Comment Deadline 3 May 2005 Extended to 31 May 2005|
|30 November 2006||IFRIC 12 Service Concession Arrangements issued||Effective for annual periods beginning on or after 1 January 2008|