IFRIC 12 Service Concession Arrangements
Published November 2006. Effective 1 August 2008 (30 March 2009 for EU preparers).
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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.
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The following interpretation refers to IFRIC 12
IFRSs Referred to by IFRIC 12
This page was last updated 24 February 2022.