There are a wide variety of arrangements in operation globally whereby government or government agencies enter into contractual service arrangements to attract private sector participation in the development, financing, operation and maintenance of infrastructure for public services.
IFRIC 12 is concerned with the accounting by private sector operators for “public-to-private” service concession arrangements (which are also know by a variety of other titles, including “service concession” “build-operate-transfer” or “rehabilitate-operate-transfer” arrangements). These arrangements typically involve a private sector operator constructing (or upgrading) the infrastructure used to provide the public service, and then operating and maintaining the infrastructure for a specified period of time.
However, the Interpretation does not apply to all such arrangements. Its scope is limited to public-to-private service concession … Read more