Document ID: chunk:federal_register_of_legislation:F2022C00554:body:0:p58
Version: federal_register_of_legislation:F2022C00554
Segment Type: other
Provision Reference: 
Character Range: 186838–190190

2021-7  20 Dec 2021  F2021L01883     31 Dec 2021         (beginning) 1 Jan 2022  see (e) below

   (a) Entities may elect to apply this Standard to annual periods beginning before 1 January 2020.
   (b) This Standard defers the effective date of AASB 1059 so that it applies to annual reporting periods beginning on or after 1 January 2020, instead of 1 January 2019.  However, earlier application is permitted.
   (c) Entities may elect to apply this Standard to annual periods beginning before 1 July 2021.
   (d) Entities may elect to apply this Standard to annual periods ending before 30 June 2021.
   (e) Entities may elect to apply this Standard to annual periods beginning before 1 January 2022.

Table of amendments to Standard
Paragraph affected  How affected  By … [paragraph/page]
 30                 repealed      Legislation Act 2003, s. 48D
 B76                amended       AASB 2019-2 [6]
 C1                 amended       AASB 2018-5 [4]
 C4                 amended       AASB 2019-2 [6]
                    amended       AASB 2021-4 [5]
 Appendix D         deleted       AASB 2021-7 [50]
 Appendix E         added         AASB 1060 [page 67]

Table of amendments to guidance
Paragraph affected  How affected  By … [paragraph]
 IG10               amended       AASB 2019-2 [6]
 IG13               amended       AASB 2019-2 [6]
 IE42-IE43          amended       AASB 2019-2 [6]
                    amended       AASB 2021-4 [5]
 IE44               amended       AASB 2021-4 [5]

Basis for Conclusions
This Basis for Conclusions accompanies, but is not part of, AASB 1059.

Introduction
    BC1         This Basis for Conclusions summarises the Australian Accounting Standards Board's considerations in reaching the conclusions in AASB 1059. In making decisions, individual Board members gave greater weight to some factors than to others.

Background

Reasons for issuing this Standard
     BC2               In Australia, public sector entities enter into service concession arrangements (also called public-private partnerships (PPPs), build-own-operate-transfer (BOOT) arrangements and other similar names) as a means of developing and delivering infrastructure and other assets for public services such as roads, bridges, tunnels, prisons, hospitals, airports, water distribution facilities, energy supply and telecommunication networks, permanent installations for military and other operations, registries and databases, and other tangible or intangible assets that are expected to be used during more than one reporting period in delivering public services. The public sector entity (the grantor) typically engages another entity (the operator) to construct or otherwise provide the underlying infrastructure and other assets through which the operator will provide public services on behalf of the grantor. In exchange for the asset (or assets) and services, the grantor makes payments to the operator or grants the operator a right to charge users of the service concession asset (or assets).

     BC3               Prior to the issue of this Standard, there was no specific Australian Accounting Standard that prescribed the accounting for service concession arrangements from the grantor's perspective.

     BC4               In determining an accounting policy for service concession arrangements in accordance with