AASB 1059 Service Concession Arrangements: Grantors (AASB 1059) is relevant for public sector agencies that are grantors in a service concession arrangement. AASB 1059 defines a service concession as an arrangement that involves an operator:
- Providing public services related to a service concession asset on behalf of the grantor; and
- Managing at least some of those public services at its (i.e. the operator’s) own discretion, rather than at the direction of the grantor.
AASB 1059 sets out how to account for service concession arrangements where the service concession asset (or assets) is (or are) controlled by the grantor, and not by the operator.
AASB 1059 comes into effect for reporting periods beginning on or after 1 January 2020. This means that:
- Treasury will make disclosures about the expected impact of AASB 1059 in a note to the 2019-20 Half Year Review.
- The 2020-21 Budget will be the prepared on the basis of AASB 1059.
- Agencies will need to disclose the expected impact of AASB 1059 (both qualitative and quantitative) in a note to their financial statements for the 2019/20 financial year.
- Treasury will prepare the 2020-21 Half Year Review on the basis of AASB 1059.
- Agencies will prepare their financial statements for the 2020/21 financial year in accordance with AASB 1059.
This page provides information about AASB 1059 to assist Clusters and agencies to successfully implement the new standard. Please note the information on this page and other support material are guides only and reference should be made to the full text of the Standard in considering the application to specific arrangements. They should not be relied on in place of professional advice.
If you cannot find the information that you require or if you have any questions, please contact [email protected].
NSW Treasury Guidance
- TC20-07 Accounting Policy – Withdrawal of TPP 06-8 Accounting for Privately Financed Projects
- TPP 19-06 AASB 1059 Service Concession Arrangements: Grantors - Scoping
- TC 20-03 Accounting Policy - Transition requirements for AASB 1059 Service Concession Arrangements: Grantors
- TC 20-04 Accounting Policy - Public sector Operators in a service concession arrangement – mandatory accounting policy and guidance
- AASB 1059 Service Concession Arrangements: Grantors – CFO readiness checklist
- AASB 1059 disclosure for FY1920 Final Published
- Application of TPP 14-01 to Service Concession Assets
- Guidance on disclosures for repeal of TPP 06-08 in FY 2021 Financial Statements
NSW Treasury Guidance - Videos
- Cluster workshop 1 - Introduction to how AASB 1059 is reflected in the FRC
- Cluster workshop 2 - Introduction to initial returns for AASB 1059 and repeal of TPP 06-08
- Cluster workshop 2 - Introduction to early close for AASB 1059 and repeal of TPP 06-08
- AASB 1059 Service Concession Arrangements: Grantors (compiled 31 December 2018)
- AASB 2019-2 Amendments to Australian Accounting Standards - Implementation AASB 1059
Frequently Asked Questions
- How do I know if I have a service concession arrangement?
- What do I need to do to prepare for AASB 1059 Service Concession Arrangements?(Updated 14 October 2019)
- What do I do if an arrangement (or part of an arrangement) is out of the scope of AASB 1059?
- What are the valuation requirements for service concession assets on transition to AASB 1059?
- How does AASB 1059 impact my budget control limits and government debt?
- How do you identify separate service concession assets within a service concession arrangement?
- How do you determine if the public services are provided ‘on behalf of’ the grantor in a potential service concession arrangement?
- What do I need to reassess under AASB 1059 at each reporting date?
- What is sufficient appropriate audit evidence for AASB 1059?
- How do I measure land in a Service Concession Arrangement?
- How do I restate existing assets under AASB 1059 when initially recognising and subsequently revaluing a service concession asset?
- How to determine if an asset is used to provide public services under AASB 1059?
- How to determine if the grantor controls a partly regulated asset?
- How do I calculate the financial liability on transition to AASB 1059?