Information note 2 -- References to AASB pronouncements that apply to typical types of public-to-private arrangements
This note accompanies, but is not part of, AASB Interpretation 12.
The table sets out the typical types of arrangements for private sector participation in the provision of public sector services and provides references to Australian Accounting Standards that apply to those arrangements. The list of arrangements types is not exhaustive. The purpose of the table is to highlight the continuum of arrangements. It is not the IFRIC’s intention to convey the impression that bright lines exist between the accounting requirements for public-to-private arrangements.
Category | Lessee | Service provider | Owner | |||
Typical arrangement types | Lease (eg Operator leases asset from grantor) | Service and/or maintenance contract (specific tasks eg debt collection) | Rehabilitate-operate-transfer | Build- | Build-own-operate | 100% Divestment/ Privatisation/ Corporation |
Asset ownership | Grantor | Operator | ||||
Capital investment | Grantor | Operator | ||||
Demand risk | Shared | Grantor | Operator and/or Grantor | Operator | ||
Typical duration | 8–20 years | 1–5 years | 25–30 years | Indefinite (or may be limited by licence) | ||
Residual interest | Grantor | Operator | ||||
Relevant pronouncement | Interpretation 12 | |||||