Document ID: chunk:federal_register_of_legislation:F2022C00554:body:0:p4
Version: federal_register_of_legislation:F2022C00554
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financial statements comply with IFRS Standards.

Accounting Standard AASB 1059

The Australian Accounting Standards Board made Accounting Standard AASB 1059 Service Concession Arrangements: Grantors under section 334 of the Corporations Act 2001 on 14 July 2017.

This compiled version of AASB 1059 applies to annual reporting periods beginning on or after 1 January 2022.  It incorporates relevant amendments contained in other AASB Standards made by the AASB up to and including 20 December 2021 (see Compilation Details).

Accounting Standard AASB 1059

Service Concession Arrangements: Grantors

Objective
     1                        The objective of this Standard is to prescribe the accounting for a service concession arrangement by a grantor that is a public sector entity.

Scope (paragraphs B1–B3)
     2                        This Standard shall be applied to service concession arrangements, which involve an operator:
          (a)                   providing public services related to a service concession asset on behalf of a grantor; and
          (b)                   managing at least some of those services under its own discretion, rather than at the direction of the grantor.
     3                        Arrangements outside the scope of this Standard include those that do not involve the delivery of a public service, those where the operator manages the public services merely as an agent of the grantor, and those that involve service and management components where the asset is not controlled by the grantor as described in paragraph 5, or paragraph 6 for a whole-of-life asset.
     4                        This Standard does not specify the accounting by operators. Guidance on accounting for service concession arrangements by private sector operators can be found in AASB Interpretation 12 Service Concession Arrangements.

Recognition and measurement of service concession assets (paragraphs B14–B59)
     5                        The grantor shall recognise an asset provided by the operator and an upgrade to or a major component replacement for an existing asset of the grantor as a service concession asset if the grantor controls the asset. The grantor controls the asset if, and only if:
          (a)                   the grantor controls or regulates what services the operator must provide with the asset, to whom it must provide them, and at what price; and
          (b)                   the grantor controls – through ownership, beneficial entitlement or otherwise – any significant residual interest in the asset at the end of the term of the arrangement.
     6                        The grantor shall recognise an asset that will be used in a service concession arrangement for its entire economic life (a 'whole-of-life' asset) if the conditions in paragraph 5(a) are met. In this case, the condition in paragraph 5(b) is not relevant and therefore the grantor controls the whole-of-life asset if the conditions in paragraph 5(a) are met.
     7                        The grantor shall initially measure the service concession asset recognised in accordance with paragraph 5 (or paragraph 6 for a whole-of-life