Document ID: chunk:federal_register_of_legislation:F2022C00554:body:0:p38
Version: federal_register_of_legislation:F2022C00554
Segment Type: other
Provision Reference: 
Character Range: 115529–120920

Not applicable.
                                                                                                                                                                                                                                                                                                                  Finance lease:                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Privatisation:
                                                                                                                                                                                                                                                                                                                  Protective rights of the grantor (lessor) typically define the scope of the operator's (lessee's) right of use.                                                                                                                                                                                                                                                                                                                                                                             Grantor's interest restricts operator's practical ability to sell or pledge asset.
Relevant Accounting Standards                                                                                                                                                                        AASB 116                                                                                                     AASB 16                                                                                                                                                                                                                                                                                 AASB 1059                                                                                                                                                                                           AASB 116 / AASB 138
                                                                                                                                                                                                     AASB 101
NOTES:
  1       A construction contract with a service outsourcing contract is a contract for the construction of an asset or a combination of assets with provision of services over a specified period.

  2       A lease is a contract that conveys the right to use a specified asset for a period of time in exchange for consideration (as defined in AASB 16).
  3       A service concession arrangement is a contract between a grantor and an operator in which the operator has the right to access the service concession asset to provide public services on behalf of the grantor, the operator is responsible for at least some of the management of the public services, and the operator is compensated for the services over the period of the service concession arrangement (as defined in AASB 1059).
  4       A sale or privatisation is an arrangement that transfers the asset and its related services from public to private ownership/ control.

Guidance examples
     IG14             The guidance examples below illustrate the features of the types of arrangements for private sector participation in the provision of public services that are outlined in the table in paragraph IG13:
          (a)                    an arrangement that is a construction contract with a service contract;
          (b)                   an arrangement that contains a lease;
          (c)                    an arrangement that contains a service concession arrangement that is partly regulated and partly unregulated; and
          (d)                   an arrangement that is a sale or privatisation.

Example 3:  Construction contract with limited operator services
     IG15             This example illustrates an arrangement that involves the operator agreeing to construct an asset or group of assets (a school) for the grantor with a contract for the provision of cleaning and security services over a specified period of time. The example is based on the facts and circumstances in Example 1 (paragraphs IG4–IG5). The grantor:
          (a)                    in accordance with paragraph 2 – determines the arrangement for the construction of the school and the provision of the services is outside the scope of AASB 1059, consistent with paragraphs IG4–IG5; and
          (b)                   assesses whether it controls the school or has a right to use the school for recognition under another Accounting Standard. In making this assessment, the grantor considers that:
              * the services the operator provides with the school would be based on the service contract agreed by the grantor and the operator; and
              * the control of or right to use the asset would depend on the service