Philippine Public Sector Accounting Standard 32

SERVICE CONCESSION ARRANGEMENTS: GRANTOR

Table of Contents

PAG
Numbe
r
BACKGROUND
INTRODUCTION TO THE IPSAS 32
PHILIPPINE APPLICATION GUIDANCE TO IPSAS 32

Scope

Effective Date

PPSAS 32 - Service Concession Arrangements: Grantor

January 2014

Page 1

SERVICE CONCESSION ARRANGEMENTS: GRANTOR

Background
This Philippine Public Sector Accounting Standard (PPSAS) 31 consists of
International Public Sector Accounting Standard (IPSAS) 32, Service
Concession Arrangements: Grantor and the Philippine Application
Guidance (PAG) prepared to suit the Philippine public sector situation.
The IPSAS 32 was issued in October 2011 by the International Public
Sector Accounting Standards Board (IPSASB) of the International
Federation of Accountants (IFAC). This includes amendments resulting
from IPSASs issued up to January 15, 2012.
The PAG (in italics) provides supplementary guidance on the proper
implementation of
IPSAS 32.
Introduction to the IPSAS 32
IPSAS 32 prescribes the accounting for service concession arrangements
by the grantor, a public sector entity. This includes the recognition of
service concession asset, liability, revenue, expenses and equity, and the
required presentation and disclosures in the financial statements.
Philippine Application Guidance to IPSAS 32
Scope
PAG1.Paragraph 3 deals with the applicability of this Standard to all public
sector entities other than Government Business Enterprises (GBEs).
GBE is an entity that has all the following characteristics: (a) Is an
entity with the power to contract in its own name; (b) Has been
assigned the financial and operational authority to carry on a
business; (c) Sells goods and services, in the normal course of its
business, to other entities at a profit or full cost recovery; (d) Is not
reliant on continuing government funding to be a going concern
(other than purchases of outputs at arms length); and (e) Is
controlled by a public sector entity.

PPSAS 32 - Service Concession Arrangements: Grantor

January 2014

Page 2

This standard shall be applied to all National Government Agencies

(NGAs), Local Government Units (LGUs) and Government-Owned
and/or Controlled Corporations (GOCCs) not considered as GBEs.
Effective Date
PAG2.

This PPSAS shall apply for annual financial statements

covering periods beginning January 1, 2014.

PPSAS 32 - Service Concession Arrangements: Grantor

January 2014

Page 3

Public Sector Auditing Standards

Board
(PSSB Auditing)