Document ID: chunk:federal_register_of_legislation:F2022C00554:body:0:p40
Version: federal_register_of_legislation:F2022C00554
Segment Type: other
Provision Reference: 
Character Range: 123431–126458

operator has discretion as to when and how it conducts the facility maintenance of providing upgrades and maintenance of the hospital to a specified condition;
          (f)                    the grantor is entitled to the residual interest in both the public wing and the private wing of the hospital at the end of the term of the arrangement, as both wings will transfer to the grantor. During the term of the arrangement, the grantor's residual interest and the requirement for the grantor to specifically approve any transferee restricts the operator from selling or pledging the hospital; and
          (g)                   both the public and private wings are built on government land, leased to the operator for a nominal fee.
     IG17             The grantor assesses separately (consistent with paragraphs B6–B7) whether the public wing and the private wing are within the scope of AASB 1059.

Hospital – Public wing (regulated)

Scope
     IG18             Based on the facts and circumstances, the grantor determines:
          (a)                    the operator accesses the public wing of the hospital to provide public services and is responsible for at least some of the management of the hospital services. The operator fulfils this management responsibility by employing the staff and scheduling services; and
          (b)                   the public wing of the hospital is a service concession arrangement that is within the scope of AASB 1059, in accordance with paragraph 2.

Grantor's control of asset for recognition under paragraph 5
     IG19             Based on the facts and circumstances, the grantor determines it controls the underlying asset (the public wing of the hospital) in the service concession arrangement, as the arrangement entered into by the grantor and the operator specifies:
          (a)                    the grantor controls or regulates (as required by paragraph 5(a)):
              * the services provided by the public wing of the hospital – the grantor is responsible for the delivery and standard of performance of the medical and operational services;
              * the recipients of the services – the public wing of the hospital is expected to provide health services to the general public; and
              * the pricing of the services – the public wing of the hospital is to provide health services at no cost to the patients; and
          (b)                   the grantor controls the significant residual interest in the asset (the public wing of the hospital) at the end of the arrangement in accordance with paragraph 5(b), as the grantor is entitled to this residual interest. Additionally, during the term of the arrangement, the operator is restricted from selling or pledging the public wing of the hospital (refer paragraphs B32–B33).

Recognition of arrangement
     IG20             Given the public wing of the hospital is within the scope of AASB 1059 (paragraph 2) and the grantor controls the asset in accordance with paragraphs 5(a) and