Accounting Standards and Guidance

FRC Financial Reporting Standards (FRSs)

UK/Irish accounting framework (effective for periods beginning on or after 1 Jan 2015)

FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland

Section 34 Specialised Activities
Section 34 – Service Concession Arrangements
Accounting by grantors – Finance lease liability model
34.12EThe infrastructure assets shall be recognised as assets of the grantor together with a liability for its obligations under the service concession arrangement.
34.12FThe grantor shall initially recognise the infrastructure assets and associated liability in accordance with paragraphs 20.9 and 20.10. If as a result of applying paragraphs 20.9 and 20.10 the grantor has not recognised a liability to make payments to the operator, it shall not recognise the infrastructure assets.
34.12GThe liability shall be recognised as a finance lease liability and subsequently accounted for in accordance with paragraph 20.11.
34.12HThe infrastructure assets shall be recognised as property, plant and equipment or as intangible assets, as appropriate, and subsequently accounted for in accordance with Section 17 or Section 18.
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