IAS 16 Property, Plant and Equipment, IAS 38 Intangible Assets and IFRIC 12 Service Concession Arrangements: Variable payments for the separate acquisition of PPE and intangible assets
The Interpretations Committee received a request to address an issue that is related to contractual payments that are made by an operator under a service concession arrangement that is within the scope of IFRIC 12. Specifically, the submitter requested that the Interpretations Committee should clarify in what circumstances (if any) those payments should:
- be included in the measurement of an asset and liability at the start of the concession; or
- be accounted for as executory in nature (ie be recognised as expenses as they are incurred over the term of the concession arrangement).