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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.

Which version of the interpretation?

'Which version of the interpretation?' is only available to members of the Financial Reporting Faculty. Please note that to access electronic versions of IFRS through the links in these standard trackers you need to have first logged into eIFRS.

Annual period starts Effective version of standard Notes on amendments
On or after 1 January 2020 IFRIC 12 2021 Required Standards Includes amendments 1-4
1 January 2019 – 31 December 2019 IFRIC 12 2019 Required Standards Includes amendments 1-3
1 January 2018 – 31 December 2018 IFRIC 12 2018 Required Standards Includes amendments 1-2

Required Standards book for a particular year assumes that there is no early application of issued but not yet effective IFRSs; The Issued Standards book assumes early application of all issued IFRSs.

For the latest version of the interpretation, and where the amendment is to be adopted early, refer to IFRIC 12 2021 Required Standards.

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