Document ID: chunk:federal_register_of_legislation:F2022C00554:body:0:p52
Version: federal_register_of_legislation:F2022C00554
Segment Type: other
Provision Reference: 
Character Range: 164613–171714

the liability.

     IE29              Because no payments are made by the grantor to the operator, there are no cash flow impacts for this example.

     Table 7.1  Statement of profit and loss and other comprehensive income (currency units)

Year                                                                                                                                                                                                  1   2   3     4     5     6     7     8     9     10    Total
Revenue (reduction of liability) (Table 7.3)                                                                                                                                                          –   –   135   135   135   136   135   135   190   191   1,192
Depreciation – base layers                                                                                                                                                                            –   –   (39)  (39)  (39)  (39)  (39)  (39)  (39)  (39)  (312)
Depreciation – original surface layers                                                                                                                                                                –   –   (18)  (19)  (18)  (18)  (19)  (18)  –     –     (110)
Depreciation – replacement surface layers                                                                                                                                                             –   –   –     –     –     –     –     –     (18)  (19)  (37)
Total depreciation                                                                                                                                                                                    –   –   (57)  (58)  (57)  (57)  (58)  (57)  (57)  (58)  (459)
Annual surplus/(deficit)                                                                                                                                                                              –   –   78    77    78    79    77    78    133   133   733
NOTES:
   1. Depreciation in years 3–8 reflects the depreciation on the original road. The road surface is fully depreciated over that period. The depreciation calculations are set out in paragraph IE23.
   2. Depreciation in years 9–10 reflects the depreciation on the new service concession asset component (surface) recognised in year 8, as set out in paragraph IE26.
   3. The revenue (reduction of the liability) includes revenue from the additional liability (Table 7.3).
   4. All revenue is recognised evenly over the remaining term of the arrangement, once the liability has been recognised and the service concession asset is operating.

     Table 7.2  Statement of financial position (currency units)

Year                                                                                                                                                                                                                                                                                                                                                                                        1       2         3       4       5       6       7       8       9       10
Service concession asset                                                                                                                                                                                                                                                                                                                                                                    525     972       933     894     855     816     777     738     699     660
 – base layers *
Service concession asset                                                                                                                                                                                                                                                                                                                                                                    –       110       92      73      55      37      18      –       –       –
 – original surface layers *
Service concession asset                                                                                                                                                                                                                                                                                                                                                                    –       –         –       –       –       –       –       110     92      73
 – replacement surface layers
Total service concession asset                                                                                                                                                                                                                                                                                                                                                              525     1,082     1,025   967     910     853     795     848     791     733
Cash                                                                                                                                                                                                                                                                                                                                                                                        –       –         –       –       –       –       –       –       –       –
Liability (Table 7.3)                                                                                                                                                                                                                                                                                                                                                                       (525)   (1,082)   (947)   (812)   (677)   (541)   (406)   (381)   (191)   –
Cumulative surplus/(deficit)                                                                                                                                                                                                                                                                                                                                                                –       –         78      155     233     312     389     467     600     733
NOTES:
   1. In this example, the resurfacing occurs as expected in year 8, when the original road surface is fully depreciated. If the resurfacing occurred earlier, the original road surface would not be fully 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 7.1).
   3. The liability is