ICAEW.com works better with JavaScript enabled.

IFRIC 12 Service Concession Arrangements

Published November 2006. Effective 1 August 2008 (30 March 2009 for EU preparers).

Become a Financial Reporting Faculty member

Find out more about the benefits of membership and joining details.

Join now


Free to view

Financial Reporting Faculty members only

Looking for real life examples?

Financial Reporting Faculty members get free access to Company Reporting’s CR service. Company Reporting are a leading research and benchmarking service on IFRS reporting practices.

Faculty membership gives you access to a range of other resources, including the hidden premium content on this page.


A service concession arrangement is an arrangement where a government or other body grants a contract for the supply of public services to a private operator.

IFRIC 12 identified two types of service concession arrangements:

  • One in which the operator has a contractual right to receive cash or another financial asset from the government
  • One in which the operator has the right to charge for access to the service that it supplies.

In the first arrangement the operator should recognise a financial asset at fair value to the extent that it has an unconditional contractual right to receive cash or another financial asset.

In the second arrangement the operator should recognise an intangible asset to the extent that it receives a right to charge users of the public service.

The International Accounting Standards Board (IASB) provides free access to the consolidated unaccompanied international accounting standards for the current year through its website. Free registration is required.

Which version of the interpretation?

Financial Reporting Faculty members who joined the faculty prior to 1 November 2022 have premium access to the consolidated edition of IFRS and amendments through the IASB's IFRS Standards Navigator service. Please log into IFRS Standards Navigator to access electronic versions of the standards through these links.

Please be aware that as part of the changes to ICAEW faculty membership, this service will be withdrawn after 31 December 2022.

Recent amendments

Full access to details of all the amendments is only available to Financial Reporting Faculty members. Find out how to join the faculty.