• An Interpretation of IAS 1, Presentation of Financial Statements

History

• SIC D29 was issued July 2001.
• Final SIC 29 was approved by the IASB in December 2001.
• Effective Date: 31 December 2001

Examples of service concession arrangements involve water treatment and supply facilities, motorways, car parks, tunnels, bridges, airports and telecommunication networks. Examples of arrangements that are not service concession arrangements include an enterprise outsourcing the operation of its internal services (for instance, employee cafeteria, building maintenance, and accounting or information technology functions).

Under SIC 29, the following should be disclosed in each period:

• a description of the arrangement;
• significant terms of the arrangement that may affect the amount, timing, and certainty of future cash flows (such as the period of the concession, re-pricing dates, and the basis on which re-pricing or re-negotiation is determined);
• the nature and extent (quantity, time period, or amount, as appropriate) of:
  • rights to use specified assets;
  • obligations to provide or rights to expect provision of services;
  • obligations to acquire or build items of property, plant and equipment;
  • obligations to deliver or rights to receive specified assets at the end of the concession period;
  • renewal and termination options; and
  • other rights and obligations (for instance, major overhauls); and
• changes in the arrangement occurring during the period.