Document ID: chunk:federal_register_of_legislation:F2022C00554:body:0:p35
Version: federal_register_of_legislation:F2022C00554
Segment Type: other
Provision Reference: 
Character Range: 94301–97704

Facility maintenance at discretion of operator
     IG6                 In this example, the facts in Example 1 apply, except that the operator is also responsible for maintenance of the school facilities by maintaining the school to a specified condition. The operator has discretion as to when and how it conducts maintenance of the school facilities.

     IG7                 Based on the facts and circumstances, whilst the operator provides maintenance of the school facilities, facility maintenance does not represent a significant component of the public services provided by the school. Therefore, the operator's responsibility for maintenance does not involve the operator in managing the school services (refer paragraph B10). Accordingly, the arrangement is not a service concession arrangement and is outside the scope of AASB 1059 (paragraph 2). The maintenance services represent an outsourced service to the grantor to enable it to provide the public services through the school.

Example 2(b):  Operator has management responsibilities
     IG8                 In this example, the facts in Example 1 apply, except that the operator is also responsible for certain operational services, in determining how many staff are required and organising classes, teachers and administrative staff, and for maintenance of the school facilities by providing upgrades and maintaining the school to a specified condition. The operator has discretion as to when and how it carries out these responsibilities.
     IG9                 Based on these facts and circumstances, the grantor concludes the operator accesses the school to provide public services and is responsible for at least some of the management of the school services. The operator fulfils this management responsibility through its significant operational and maintenance responsibilities, even though the staff are provided by the grantor (refer paragraph B10). Accordingly, the arrangement is a service concession arrangement within the scope of AASB 1059.
     IG10             The diagram below summarises the recognition and measurement requirements for assets (other than goodwill) and service concession arrangements subject to AASB 1059.

References to Australian Accounting Standards that apply to typical types of arrangements involving an asset combined with provision of a service
     IG11             The table below sets out the typical types of arrangements for private sector participation in the provision of public sector services and provides references to Accounting Standards that may apply to those arrangements. The list of arrangement types is not exhaustive. The purpose of the table is to highlight the continuum of arrangements. It is not the AASB's intention to convey the impression that bright lines exist between the accounting requirements for various types of arrangements.
     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/