News Article - 05 December 2006
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The International Financial Reporting Interpretations Committee (IFRIC) – part of the International Accounting Standards Board (IASB) – has published IFRIC 12, Service Concession Arrangements.

Service concessions involve the government or public sector departments providing grant contracts for the delivery of public services to the private sector.

The interpretation addresses how operators of service concessions should apply current international financial reporting standards when accounting for the duties they carry out and any rights they receive.

Robert Garnett, IASB member and chairman of the IFRIC, said: "Long-term arrangements with the private sector are becoming an increasingly common means used by governments to discharge their public responsibilities."

He stated that various parties had requested that the board provides some guidance on the issue and that a public consultation on the topic had received positive feedback.

Last month, the committee issued an interpretation of IFRIC 11 with the aim of helping businesses apply share-based payments to arrangements involving equity instruments.

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