Is Ifric 12 still valid?
Effective date IFRIC 12 is effective for annual periods beginning on or after 1 January 2008. Earlier application is permitted.
What is service concession accounting?
A service concession arrangement is an arrangement whereby a government or other public sector body contracts with a private operator to develop, operate and maintain an infrastructure asset such as a road, bridge, tunnel, airport, energy distribution network, prison or hospital.
WHO recognizes service concession asset?
(b) The grantor recognizes a liability when it grants the operator the right to earn revenue from third-party users of the service concession asset or another revenue-generating asset. Under paragraph 26 of IFRIC 12, the operator recognizes an intangible asset.
What are concession assets?
Service concession assets These are assets used to provide public services in a service concession arrangement that is provided by the operator. The operator constructs, develops, or acquires the asset from a third party or it is an existing asset of the operator.
How are ASC 606 and IFRS 15 different?
A completed contract under ASC 606 is defined as a contract in which all, or substantially all, the revenue has been recognized. Under IFRS 15, a completed contract is one in which the entity has transferred all goods or services.
Who does ASC 606 apply to?
ASC 606 is a revenue recognition standard that applies to all business entities that enter into contracts to provide goods or services to customers; including non-profit, private, and public companies. Considering this, both private and public companies need to comply with ASC 606.
What is the purpose of IFRIC?
IFRIC 2 gives guidance on how those redemption terms should be evaluated in determining whether the shares should be classified as financial liabilities or as equity. Under IFRIC 2, shares for which the member has the right to request redemption are normally liabilities.