FASB issues guidance on service concession arrangements
Posted by mostafa on 24 January, 2014
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The FASB has issued Accounting Standards Update (ASU) No. 2014-05, “Service Concession Arrangements,” which prohibits an operating entity from accounting for a service concession arrangement as a lease. In addition, the ASU states that “infrastructure used in a service concession arrangement should not be recognized as property, plant, and equipment of the operating entity.”