What is service concession arrangements?
About. A service concession arrangement is an arrangement whereby a government or other public sector body contracts with a private operator to develop, operate and maintain an infrastructure asset such as a road, bridge, tunnel, airport, energy distribution network, prison or hospital.
What is a service concession arrangements GASB?
Based on GASB 60, an SCA is an arrangement between a transferor (a government) and an operator (governmental or nongovernmental entity) where the transferor conveys to the operator the right to provide public services through the use of a facility (either existing or newly constructed infrastructure) or other asset, in …
Is a service concession arrangement a lease?
There are four elements you should understand when accounting for service concession arrangements. The operator does not recognize property, plant, and equipment or a lease asset for the infrastructure even though title may transfer to the operator or the arrangement may be structured as a lease.
What are the different types of concession agreement?
There are different types of concession contracts, including: ex-leasing, franchise, build- operate-transfer (BOT) etc. Private finance initiatives (PFIs) may also be considered similar to concessions.
What is a service concession arrangement and why might a government choose to enter into such an arrangement?
A service concession arrangement is an arrangement whereby a government or other public sector body contracts with a private operator to develop (or upgrade), operate and maintain the grantor’s infrastructure assets such as roads, bridges, tunnels, airports, energy distribution networks, prisons or hospitals.
What is the difference between a concession and a lease?
A concession or concession agreement is a grant of rights, land or property by a government, local authority, corporation, individual or other legal entity. A lease gives a company the right to operate and maintain a public utility, but investment remains the responsibility of the public.
What is GASB 72?
Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurement and Application, provides guidance for determining and applying fair value measurements for financial reporting for governments. It’s effective for years beginning after June 15, 2015.
Is concession agreement an asset?
Service concession assets These are assets used to provide public services in a service concession arrangement that is provided by the operator. The operator constructs, develops, or acquires the asset from a third party or it is an existing asset of the operator.
How does concession work?
It works like this: The buyer (or the buyer’s agent) negotiates the concession amount with the seller or the seller’s agent. Together, they agree on a sale price that includes the amount of the seller concessions. The concessions are then typically added on to the mortgage and used to pay closing costs.
What is an example of a concession?
The definition of concession is something granted in response to demands, or a special allowance, or is the right to use land or property granted by the owner. When you are negotiating and you give in to something that the other side wants, this is an example of a concession.
What is a government concession?
A concession or concession agreement is a grant of rights, land or property by a government, local authority, corporation, individual or other legal entity. Under a management contract the operator will collect the revenue only on behalf of the government and will in turn be paid an agreed fee.
What is GASB 54?
Fund balance refers to the difference between assets and liabilities in the governmental funds balance sheet. Statement 54 was designed to improve financial reporting by establishing fund balance classifications that are easier to understand and apply. …
What is works or services concession?
Concessions involve a contractual arrangement between a public authority and an economic operator (the concession holder). The latter provides services or carries out works and is remunerated by being permitted to exploit the work or service.
What is an adverb of concession?
Adverb Clause of Concession or Supposition: Expresses an idea that suggests the opposite of the main part of the sentence. We may also say, the information in the independent clause indicates a concession or an unexpected result of something in the dependent clause.
What are concession statements?
Concession Placement. As these examples suggest, the concession usually precedes the thesis statement itself. This order is mainly to ensure that readers remember your idea most vividly; in general, people most clearly retain the last idea that they read in a series of ideas.
What are rental concessions?
Rental Concessions are benefits that are offered by the landlord to his tenants. Concessions are usually offered to draw tenants to vacant properties. Some other landlords may choose to offer a concession if the tenant decides to renew the lease.