Service Concession – NBC Institute

PSAF – July 2023 – L2 – Q4b – International public sector accounting standards

Discuss the recognition of service concession assets under IPSAS 32 and determine whether a hostel facility qualifies as a service concession asset.

Question

A public university has engaged a private estate developer to construct a hostel for its candidates under a Build-Operate-Transfer arrangement over 25 years. Under the arrangement, the university reserves the right to fully control services the operator offers and any significant residual interest. The hostel can only be used to provide accommodation for candidates of the university. The university prepares its financial statements in compliance with the International Public Sector Accounting Standards (IPSAS). The Director of Finance is uncertain whether the hostel facility is a service concession asset or not.

Required:

i) In reference to the above, explain the term “service concession asset” under IPSAS 32: Service Concession Arrangement: Grantor. (1 mark)

ii) Discuss TWO (2) conditions necessary for the recognition of a service concession asset, and indicate whether the hostel facility qualifies for recognition under IPSAS 32. (6 marks)

iii) Outline THREE (3) disclosures that the grantor should make in the notes to the financial statements in respect of concession assets. (3 marks)

Answer

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Tags: Financial Reporting, Grantor, IPSAS 32, Public Sector, Service Concession
Level: Level 2

Topic: International public sector accounting standards
Series: JULY 2023

PSAF – May 2016 – L2 – Q4c – Public sector financing initiatives

This question explores the objectives and guiding principles of Public Private Partnership (PPP) agreements in Ghana.

Question

i) State ONE objective of a public private partnership agreement?

ii) Explain THREE factors that the Government would consider before entering into a public private partnership agreement?

iii) Explain the following terms used as guiding principles in IPSAS 13 and 32 – Accounting for Public Private Partnership:

Service Concession Arrangement
Lease
Recognition of Revenue
Economic Life of an Asset

Answer

Find Related Questions by Tags, levels, etc.

Tags: Asset Life, Financial management, Ghana, IPSAS, Lease, PPP, Public-Private Partnership, Revenue Recognition, Service Concession
Level: Level 2

Topic: Public sector financing initiatives
Series: MAY 2016

PSAF – Mar 2023 – L2 – Q4c – Public sector financing initiatives

Explains the financial liability model and grant of right to operator model under IPSAS 32 for recognizing liability in service concession arrangements.

Question

Explain the following models of recognition of liability under a service concession arrangement under IPSAS 32: Service Concession-Grantor:

i) Financial liability model
ii) Grant of right to operator model

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial Liability Model, Grant of Right to Operator Model, IPSAS 32, Liability Recognition, Service Concession
Level: Level 2

Topic: Public sector financing initiatives
Series: MAR 2023

PSAF – April 2022 – L2 – Q4 – Public Procurement

Discuss reasons for tender failure, explain procurement terms, and account for elements under IPSAS 32: Service Concession - Grantor.

Question

a) Banky Construction Ltd has tendered for several contracts that were advertised, but in each case, they failed to win these contracts. The company is now worried about their situation, as it may lead to the liquidation of the company. They have just contacted you for advice on how to reverse this unfortunate downturn.

Required:
Explain FOUR (4) challenges that are likely to be the reason why they are failing to win contracts. (4 marks)

b) Explain the following terms and practices as used in Public Procurement:
i) Tender Security
ii) Least Cost Selection
iii) Tender Evaluation Panel
iv) Board of Survey
(6 marks)

c) Discuss how each of the elements of Financial Statements listed below are recognized and measured under IPSAS 32: Service Concession – Grantor:
i) Service concession asset
ii) Liability
iii) Revenue
(10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: IPSAS 32, Public Procurement, Service Concession, Tendering
Level: Level 2

Topic: Public Procurement
Series: APR 2022

PSAF – July 2023 – L2 – Q4b – International public sector accounting standards

Discuss the recognition of service concession assets under IPSAS 32 and determine whether a hostel facility qualifies as a service concession asset.

Question

Required:

i) In reference to the above, explain the term “service concession asset” under IPSAS 32: Service Concession Arrangement: Grantor. (1 mark)

ii) Discuss TWO (2) conditions necessary for the recognition of a service concession asset, and indicate whether the hostel facility qualifies for recognition under IPSAS 32. (6 marks)

iii) Outline THREE (3) disclosures that the grantor should make in the notes to the financial statements in respect of concession assets. (3 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial Reporting, Grantor, IPSAS 32, Public Sector, Service Concession
Level: Level 2

Topic: International public sector accounting standards
Series: JULY 2023

PSAF – May 2016 – L2 – Q4c – Public sector financing initiatives

This question explores the objectives and guiding principles of Public Private Partnership (PPP) agreements in Ghana.

Question

i) State ONE objective of a public private partnership agreement?

ii) Explain THREE factors that the Government would consider before entering into a public private partnership agreement?

iii) Explain the following terms used as guiding principles in IPSAS 13 and 32 – Accounting for Public Private Partnership:

Service Concession Arrangement
Lease
Recognition of Revenue
Economic Life of an Asset

Answer

Find Related Questions by Tags, levels, etc.

Tags: Asset Life, Financial management, Ghana, IPSAS, Lease, PPP, Public-Private Partnership, Revenue Recognition, Service Concession
Level: Level 2

Topic: Public sector financing initiatives
Series: MAY 2016

PSAF – Mar 2023 – L2 – Q4c – Public sector financing initiatives

Explains the financial liability model and grant of right to operator model under IPSAS 32 for recognizing liability in service concession arrangements.

Question

Explain the following models of recognition of liability under a service concession arrangement under IPSAS 32: Service Concession-Grantor:

i) Financial liability model
ii) Grant of right to operator model

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial Liability Model, Grant of Right to Operator Model, IPSAS 32, Liability Recognition, Service Concession
Level: Level 2

Topic: Public sector financing initiatives
Series: MAR 2023

PSAF – April 2022 – L2 – Q4 – Public Procurement

Discuss reasons for tender failure, explain procurement terms, and account for elements under IPSAS 32: Service Concession - Grantor.

Question

Required:
Explain FOUR (4) challenges that are likely to be the reason why they are failing to win contracts. (4 marks)

b) Explain the following terms and practices as used in Public Procurement:
i) Tender Security
ii) Least Cost Selection
iii) Tender Evaluation Panel
iv) Board of Survey
(6 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: IPSAS 32, Public Procurement, Service Concession, Tendering
Level: Level 2

Topic: Public Procurement
Series: APR 2022

Question Tag: Service Concession

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PSAF – July 2023 – L2 – Q4b – International public sector accounting standards

Discuss the recognition of service concession assets under IPSAS 32 and determine whether a hostel facility qualifies as a service concession asset.

PSAF – May 2016 – L2 – Q4c – Public sector financing initiatives

This question explores the objectives and guiding principles of Public Private Partnership (PPP) agreements in Ghana.

PSAF – Mar 2023 – L2 – Q4c – Public sector financing initiatives

Explains the financial liability model and grant of right to operator model under IPSAS 32 for recognizing liability in service concession arrangements.

PSAF – April 2022 – L2 – Q4 – Public Procurement

Discuss reasons for tender failure, explain procurement terms, and account for elements under IPSAS 32: Service Concession - Grantor.

PSAF – July 2023 – L2 – Q4b – International public sector accounting standards

Discuss the recognition of service concession assets under IPSAS 32 and determine whether a hostel facility qualifies as a service concession asset.

PSAF – May 2016 – L2 – Q4c – Public sector financing initiatives

This question explores the objectives and guiding principles of Public Private Partnership (PPP) agreements in Ghana.

PSAF – Mar 2023 – L2 – Q4c – Public sector financing initiatives

Explains the financial liability model and grant of right to operator model under IPSAS 32 for recognizing liability in service concession arrangements.

PSAF – April 2022 – L2 – Q4 – Public Procurement

Discuss reasons for tender failure, explain procurement terms, and account for elements under IPSAS 32: Service Concession - Grantor.

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PSAF – July 2023 – L2 – Q4b – International public sector accounting standards

Discuss the recognition of service concession assets under IPSAS 32 and determine whether a hostel facility qualifies as a service concession asset.

You're reporting an error for "PSAF – July 2023 – L2 – Q4b – International public sector accounting standards"

PSAF – May 2016 – L2 – Q4c – Public sector financing initiatives

This question explores the objectives and guiding principles of Public Private Partnership (PPP) agreements in Ghana.

You're reporting an error for "PSAF – May 2016 – L2 – Q4c – Public sector financing initiatives"

PSAF – Mar 2023 – L2 – Q4c – Public sector financing initiatives

Explains the financial liability model and grant of right to operator model under IPSAS 32 for recognizing liability in service concession arrangements.

You're reporting an error for "PSAF – Mar 2023 – L2 – Q4c – Public sector financing initiatives"

PSAF – April 2022 – L2 – Q4 – Public Procurement

Discuss reasons for tender failure, explain procurement terms, and account for elements under IPSAS 32: Service Concession - Grantor.

You're reporting an error for "PSAF – April 2022 – L2 – Q4 – Public Procurement"

PSAF – July 2023 – L2 – Q4b – International public sector accounting standards

Discuss the recognition of service concession assets under IPSAS 32 and determine whether a hostel facility qualifies as a service concession asset.

You're reporting an error for "PSAF – July 2023 – L2 – Q4b – International public sector accounting standards"

PSAF – May 2016 – L2 – Q4c – Public sector financing initiatives

This question explores the objectives and guiding principles of Public Private Partnership (PPP) agreements in Ghana.

You're reporting an error for "PSAF – May 2016 – L2 – Q4c – Public sector financing initiatives"

PSAF – Mar 2023 – L2 – Q4c – Public sector financing initiatives

Explains the financial liability model and grant of right to operator model under IPSAS 32 for recognizing liability in service concession arrangements.

You're reporting an error for "PSAF – Mar 2023 – L2 – Q4c – Public sector financing initiatives"

PSAF – April 2022 – L2 – Q4 – Public Procurement

Discuss reasons for tender failure, explain procurement terms, and account for elements under IPSAS 32: Service Concession - Grantor.

You're reporting an error for "PSAF – April 2022 – L2 – Q4 – Public Procurement"

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