Transition amendments to AASB 1059 Service Concession Arrangements: Grantors

Thursday, June 24, 2021

The AASB issued AASB 2021-4 to amend the modified retrospective transition method for service concession grantors measuring the Grant of a Right to the Operator (GORTO) liability when implementing AASB 1059.

AASB 2021-4 Amendments to Australian Accounting Standards – Modified Retrospective Transition Approach for Service Concession Grantors amended paragraph C4(c) so that the GORTO liability is initially measured based on the fair value (current replacement cost) of the service concession asset at the date of initial application, adjusted by:

The AASB issued AASB 2021-4 to address an issue raised by a stakeholder that paragraph C4(c) did not specify how contributions transferred by the grantor to the operator prior to the date of initial application are to be treated when measuring the GORTO liability under the modified retrospective transition approach.

AASB 2021-4 is applicable to annual periods ending on or after 30 June 2021, with earlier application permitted.

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