Document ID: chunk:federal_register_of_legislation:F2022C00554:body:0:p50
Version: federal_register_of_legislation:F2022C00554
Segment Type: other
Provision Reference: 
Character Range: 159030–162235

depreciated, and would need to be derecognised in accordance with AASB 116 before the new component of the service concession asset related to the resurfacing is recognised.
   2. The new component of the service concession asset related to the resurfacing is recognised in year 8. Years 9–10 reflect depreciation on this additional component (Table 6.2).
   3. The financial liability is increased in year 8 for the recognition of the new component of the service concession asset.
  * From year 3, opening balance less depreciation for the year (Table 6.2).

     Table 6.4  Changes in the financial liability (currency units)
Year                                                                                         1    2      3      4      5      6      7      8      9      10
Balance brought forward                                                                      –    525    1,082  961    832    695    550    396    343    177
Liability recognised along with initial service concession asset  *                          525  525    –      –      –      –      –      –      –      –
Finance charge added to liability prior to payments being made *                             –    32     –      –      –      –      –      –      –      –
Portion of predetermined series of payments that reduces the liability †                     –    –      (121)  (129)  (137)  (145)  (154)  (163)  (166)  (177)
Liability recognised along with replacement surface layers                                   –    –      –      –      –      –      –      110    –      –
Balance carried forward                                                                      525  1,082  961    832    695    550    396    343    177    –
NOTES:
* See paragraph IE18.
  † Annual payment (Table 6.1) less service payment and finance charge payment (Table 6.2).

Example 7:  The grantor grants the operator the right to charge users a toll for use of the road (paragraphs 21–23)

Additional arrangement terms
     IE22              The terms of the arrangement allow the operator to collect tolls from drivers using the road. The operator forecasts that vehicle numbers will remain constant over the duration of the arrangement and that it will receive tolls of CU200 in each of years 3–10. The total consideration (tolls of CU200 in each of years 3–10) reflects the fair values (current replacement cost) for each of the assets and services indicated in Table 6, and is intended to cover the cost of constructing the road, annual operating costs of CU12 and reimbursement to the operator for the cost of resurfacing the road in year 8 of CU110.

Financial statement impact
     IE23              The grantor initially recognises the service concession asset as property, plant, and equipment at its fair value (current replacement cost) (total CU1,082, determined as CU940 related to construction of the base layers, CU110 related to construction of the original surface layers and CU32 for implied funding costs related to the costs incurred in year 1 for base layers). The asset is recognised as it is constructed (CU525 in year 1 and CU557 in year 2). Depreciation is recognised annually (CU57, comprised of CU39