Final GASB Guidance on Service Concession Arrangements: GASB Statement No. 60, Which Is Scheduled to Take Effect No Later Than for the Fiscal Year That Ends December 31, 2012, Provides Guidance on the Appropriate Accounting and Financial Reporting for Public-Private Partnerships

By Gauthier, Stephen J. | Government Finance Review, June 2011 | Go to article overview

Final GASB Guidance on Service Concession Arrangements: GASB Statement No. 60, Which Is Scheduled to Take Effect No Later Than for the Fiscal Year That Ends December 31, 2012, Provides Guidance on the Appropriate Accounting and Financial Reporting for Public-Private Partnerships


Gauthier, Stephen J., Government Finance Review


In November 2010, the Governmental Accounting Standards Board (GASB) issued final guidance on the appropriate accounting and financial reporting for service concession arrangements (SCAs), commonly known as public-private (or public-public) partnerships (P3s). This new guidance, in the form of GASB Statement No. 60, Accounting and Financial Reporting for Service Concession Arrangements, is scheduled to take effect no later than for the fiscal year that ends December 31, 2012.

BACKGROUND AND SCOPE

An SCA is an arrangement whereby a government (transferor) turns over the operation of one of its capital assets (most often infrastructure) to a third-party operator in exchange for some form of consideration. The operator is then compensated from related fees and charges. Examples of an SCA would include:

* An arrangement to build a facility that will belong to the government in return for the right to collect fees from third parties;

* An arrangement to provide significant consideration to the government in return for the right to collect fees from third parties in connection with an existing facility; and

* An arrangement to build a facility that will be conveyed to the government at the end of the contract in return for the right to collect fees from third parties.

The new guidance applies to government-wide and proprietary fund financial statements, but not to the financial statements of governmental funds.

TRANSFEROR REPORTING

GASB Statement No. 60 directs that the capital asset underlying an SCA be treated like any other capital asset. If the operator constructs a new facility for the transferor (or improves an existing facility), the new facility (or improvement) should be reported at fair value as of the date it is placed into operation. If consideration from the operator takes the form of an installment contract, the contract should be reported as an asset at its discounted present value. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Final GASB Guidance on Service Concession Arrangements: GASB Statement No. 60, Which Is Scheduled to Take Effect No Later Than for the Fiscal Year That Ends December 31, 2012, Provides Guidance on the Appropriate Accounting and Financial Reporting for Public-Private Partnerships
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.