IPSASB proposes service concession accounting by grantors

  • IPSASB (International Public Sector Accounting Standards Board) (mid gray) Image

22 Feb, 2010

The International Public Sector Accounting Standards Board (IPSASB) is seeking comments on a proposed standard on accounting for service concession arrangements by the grantor.

Service concession arrangements – often called Private-Public Partnerships or PPPs – involve an operator providing services to the public on behalf of a grantor, which is usually the government or another public sector entity. For many countries, such arrangements are a means to ensure large-scale infrastructure projects, such as the building of roads and airports, can be developed and provided to the public for use. However, in some cases, they are not recognized in the financial statements, effectively concealing the financial position of the grantor. IPSASB has proposed guidance on how grantors should recognise, account for, and disclose assets in service concession arrangements. Currently, there is no international standard to address the accounting for such arrangements from the grantor's perspective. IFRIC 12 Service Concession Arrangements applies only to the operators of these arrangements. Click for IPSASB Press Release (PDF 35k).


Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.