Document ID: chunk:federal_register_of_legislation:F2022C00554:body:0:p36
Version: federal_register_of_legislation:F2022C00554
Segment Type: other
Provision Reference: 
Character Range: 97185–104209

IG12             The shaded text shows arrangements within the scope of AASB 1059.

Category                       Lease                                            Service provision                                                 Sale
Typical arrangement types      Lease (e.g. operator leases asset from grantor)  Service outsourcing contract (specific tasks eg debt collection)  Rehabilitate-operate-transfer  Build-operate-transfer              Build-own-operate                                      100% Divestment/ Privatisation/ Corporation
Asset ownership                Grantor                                                                                                            Operator
Capital investment             Grantor                                          Operator
Demand risk                    Shared                                           Grantor                                                           Grantor and/or Operator        Operator
Typical duration               8–20 years                                       1–5 years                                                         25-30 years                                                        Indefinite (or may be limited by contract or licence)
Significant residual interest  Grantor                                                                                                            Operator
Relevant                                                                                                                                          This Standard/
Accounting Standards           AASB 16                                          AASB 101                                                          AASB 116/                      AASB 116/ AASB 138 (derecognition)
                                                                                                                                                  AASB 138

     IG13             The table below compares the key features of various common types of arrangements for private sector participation in the provision of public services. This table presents simple arrangements, however the classification of an arrangement as a construction contract with a service outsourcing contract, lease, service concession arrangement, or sale or privatisation will depend on the specific terms and conditions of the arrangement.
Features                                                                                                                                                                                             Construction contract with service outsourcing contract1                                                     Lease2                                                                                                                                                                                                                                                                                  Service concession arrangement3                                                                                                                                                                     Sale/Privatisation4
                                                                                                                                                                                                                                                                                                                  (grantor is lessor)
Determining whether arrangement is within the scope of AASB 1059 (paragraphs 2, IG2)                                                                                                                 Conclusion (based on analysis below) –                                                                       Conclusion (based on analysis below) –                                                                                                                                                                                                                                                  Conclusion (based on analysis below) –                                                                                                                                                              Conclusion (based on analysis below) –
                                                                                                                                                                                                     Outside the scope of AASB 1059 and grantor controls the asset.                                               Depending on terms of arrangement, can be outside or within the scope of AASB 1059.                                                                                                                                                                                                     Within the scope of AASB 1059 and grantor controls the asset.                                                                                                                                       Outside the scope of AASB 1059 and grantor does not control the asset.
Operator provides public services related to the asset on behalf of the grantor and is responsible for the management of at least some of the public services (paragraph B10)?                       Operator provides construction services.                                                                     Operator involvement in the management of the public services and related services varies, depending on the lease terms (ie operator may have full involvement or be limited to facility management that is not a significant component of the public services provided by the asset).  Operator involved in management of public services provided by the asset that is not predetermined by grantor (ie operator has discretion as to how the public services are provided and managed).  Operator does not provide public services on behalf of the grantor, despite any protective rights of the grantor.
                                                                                                                                                                                                     Operator acts as an agent in providing public services and related services as predetermined by the grantor
Determining whether grantor controls the asset for recognition as service concession asset (paragraph 5(a))                                                                                          Grantor controls or regulates all three aspects.                                                             Operator typically controls all three aspects in a lease, but grantor might control or regulate some.                                                                                                                                                                                   Grantor controls or regulates all three aspects.