Document ID: chunk:federal_register_of_legislation:F2022C00554:body:0:p8
Version: federal_register_of_legislation:F2022C00554
Segment Type: other
Provision Reference: 
Character Range: 19996–23238

the operator the right to earn revenue from third-party users of the service concession asset or access to another revenue-generating asset, the exchange is regarded as a transaction that will generate revenue for the grantor. As the right granted to the operator to access the grantor's underlying service concession asset is effective for the period of the service concession arrangement, the grantor does not recognise revenue from the exchange immediately. Instead, a liability is recognised for revenue that is not yet earned. The revenue is then recognised according to the economic substance of the service concession arrangement, and the liability is reduced as revenue is recognised.

Dividing the arrangement
     24                    If the grantor compensates the operator for the provision of a service concession asset partly by incurring a financial liability and partly by the grant of a right to the operator, it is necessary to account separately for each part of the total liability recognised in accordance with paragraph 11. The amount initially recognised for the total liability shall be the same amount as that specified in paragraph 12.
     25                    The grantor shall account for each part of the liability referred to in paragraph 24 in accordance with paragraphs 15–23. The financial liability part shall be measured first, and the remainder of the total liability allocated to the part related to the grant of the right to the operator (see paragraphs B73 and B74).

Other liabilities, commitments, contingent liabilities and contingent assets (paragraphs B75–B78)
     26                    The grantor shall account for other liabilities, commitments, contingent liabilities and contingent assets arising from a service concession arrangement in accordance with AASB 9, AASB 137 Provisions, Contingent Liabilities and Contingent Assets, and any other relevant Standards.

Other revenues
     27                    The grantor shall account for revenues arising from a service concession arrangement, other than those specified in paragraphs 21–23, in accordance with AASB 15 Revenue from Contracts with Customers or AASB 1058 Income of Not-for-Profit Entities, as appropriate.

Presentation and disclosure (paragraphs B79–B80)
     28                    The objective of the disclosure requirements is for an entity to disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of assets, liabilities, revenue and cash flows arising from service concession arrangements. To achieve this, an entity shall consider disclosing qualitative and quantitative information about its service concession arrangements, including the following:
          (a)                   a description of the arrangements;
          (b)                   significant terms of the arrangements that may affect the amount, timing and uncertainty of future cash flows (eg the period of the arrangement, re-pricing dates and the basis upon which re-pricing or renegotiation is determined);
          (c)                    the nature and extent (eg quantity, time period, or amount, as appropriate) of:
(i)                     rights to receive specified