ICAEW.com works better with JavaScript enabled.

IFRIC 12 Service Concession Arrangements

IFRIC 12 provides accounting guidance for arrangements where a contract is granted for the supply of public services such as roads.

Access the interpretation

Registration is required to access the free version of the Issued Standards. This version does not include additional documents that accompany the full standards (such as illustrative examples, implementation guidance and basis for conclusions).

Summary

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.

Recent amendments

Log in to read more

These resources are available exclusively to Corporate Reporting Faculty subscribers, ICAEW members and students.

IFRS accounting standards referred to by IFRIC 12

Other resources

Further support

Financial reporting helpsheets
Corporate reporting resources

Practical resources including factsheets, online guides and webinars on financial and non-financial reporting.

Browse the collections
Black woman working at computer
Technical Advisory Services

Our experienced advisors can help you with technical questions.

Get in touch
Young man reading in a library
Library and Information Service

Expert help with research and access to trustworthy, professional sources.