New illustrative examples on 'service concessions'

  • IFRIC (International Financial Reporting Interpretations Committee) (blue) Image

04 May 2005

On 3 March 2005, the International Financial Reporting Interpretations Committee (IFRIC) released for public comment Three Related Draft Interpretations: D12 Service Concession Arrangements – Determining the Accounting Model D13 Service Concession Arrangements – the Financial Asset Model D14 Service Concession Arrangements – the Intangible Asset Model The draft Interpretations contain examples illustrating the application of the two accounting models.

For illustrative purposes, the examples are based on simplified assumptions – most notably, that the concessions last for a period of only 10 years. In practice, service concessions typically last for longer periods and have more complicated fact patterns than those illustrated in the draft Interpretations. A group of constituents suggested that it would be useful for commentators to see the impact of the proposals on a more life-like example. The IFRIC agreed, and the illustrations prepared by those constituents can be Downloaded Here (ZIP 122k). Comment deadline is 31 May 2005.

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