SIC-29 — Service Concession Arrangements: Disclosures


  • IAS 1 Presentation of Financial Statements


9 July 2001 SIC-D29 Disclosure – Service Concession Arrangements published Comment deadline 10 September 2001
24 December 2001 SIC-29 Disclosure – Service Concession Arrangements issued Effective 31 December 2001
30 November 2006 Title of SIC-29 changed to Service Concession Arrangements: Disclosures on the issue of IFRIC 12 Service Concession Arrangements Effective for annual periods beginning on or after 1 January 2008

Summary of SIC-29

SIC-29 prescribes the information that should be disclosed in the notes to the financial statements of a concession operator and a concession provider when the two parties are joined by a service concession arrangement. A service concession arrangement exists when an enterprise (the concession operator) agrees with another enterprise (the concession provider) to provide services that give the public access to major economic and social facilities.

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 (for instance, employee cafeteria, building maintenance, and accounting or information technology functions).

Under SIC-29, the following should be disclosed in each period:

  • a description of the arrangement
  • significant terms of the arrangement that may affect the amount, timing, and certainty of future cash flows (such as the period of the concession, re-pricing dates, and the basis on which re-pricing or re-negotiation is determined)
  • the nature and extent (quantity, time period, or amount, as appropriate) of:
    • rights to use specified assets
    • obligations to provide or rights to expect provision of services
    • obligations to acquire or build items of property, plant and equipment
    • obligations to deliver or rights to receive specified assets at the end of the concession period
    • renewal and termination options
    • other rights and obligations (for instance, major overhauls)
  • changes in the arrangement occurring during the period
  • how the service arrangement has been classified
  • the amount of revenue and profits or losses recognised in the period on exchanging construction services for a financial asset or an intangible asset.

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.