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IFRIC 12 distinguishes between two types of service concession agreements. Public-private service concession agreements apply to: if: As we know that the operator acts as a service provider, it recognizes revenue according to the Indian Accounting Standard (Ind AS) 115. Contractual commitments to restore infrastructure to a particular level of maintenance: On October 31, 2011, the International Public Sector Accounting Standards Board (IPSASB) IPSAS 32 Service Concession Arrangements: Grantor, which aims to address a lack of international guidelines, how governments and other public sector bodies should notify their participation in service concession agreements , which are often used to provide infrastructure to maintain and improve critical public services. The operator of a service concession agreement accounts for and measures revenues for the services it provides in accordance with Agreements 11 and 18. Intangible assets: to the extent that the operator has the right to charge royalties to public service users (no unconditional fee, as the amounts depend on the use of the public user). Paragraph D22 of Ind AS 101, the first adoption of Indian accounting standards, allows for amortization based on results on intangible assets resulting from service concession agreements on toll roads recorded in the closing accounts for the period ending immediately before the start of the first reference period. Oh yes, if the operator provides more than one service under a single contract, the consideration received by the customer is awarded on the basis of the fair value of the services provided. The exemption applies to intangible assets resulting from toll road service concession agreements that are recorded in the financial statements prior to the start of the company`s first reference period. In this case, A Ltd. is not eligible for the exemption, as the intangible asset is in progress and it was not recognized until April 1, 2016 and amortization has not yet begun. Infrastructure should not be recognized as the operator`s property, facilities and equipment, as the contractual service agreement does not confer the right of control on the operator. (b) unders cover (between amounts received from service users and amounts shown); Or a service concession agreement is an agreement whereby a government or other public body enters into contracts with a private operator for the development (or modernization), operation and maintenance of the funder`s infrastructure resources such as roads, bridges, tunnels, airports, energy distribution networks, prisons or hospitals. The donor controls or defines the services that the trader must provide using the assets, to whom and at what price, and also controls any significant residual interest in the assets at the end of the term of the agreement.

The right to an intangible asset: it is a right to incriminate public service users.

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