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].

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Last updated: 06/09/2021