Norwalk, CT, September 4, 2009—The deadline for public comment on the Governmental Accounting Standards Board's (GASB) Exposure Draft, Accounting and Financial Reporting for Service Concession Arrangements, is September 30, 2009. The GASB will conduct a public hearing on the Exposure Draft on October 6, 2009, at its offices in Norwalk, Connecticut. The deadline for notifying the GASB of an intention to testify is September 18.
The objective of the proposed Statement is to improve financial reporting by establishing recognition, measurement, and disclosure requirements for service concession arrangements (SCAs). An SCA is an arrangement between a government (the transferor) and a private entity or another government (the operator) in which:
(a) The transferor conveys to an operator the right and related
obligation to provide services through the use of
infrastructure or another public asset (a "facility"), and
(b) The operator collects fees from third parties.
Recent examples of SCAs include long-term arrangements associated with toll roads, hospitals, and student housing. The proposal provides guidance on determining whether the transferor should report the facility subject to the SCA as its capital asset. It addresses up-front or installment payments related to the SCA. It also provides reporting guidance for governments acting as operators in an SCA.
Written comments may be submitted through an Internet-based form or addressed to the Director of Research and Technical Activities, Project No. 30, and emailed to firstname.lastname@example.org or mailed to the GASB, 401 Merritt 7, PO Box 5116, Norwalk, CT 06856-5116.
The October 6th public hearing on the Exposure Draft is scheduled to begin at 1:00 p.m., at the GASB offices, 401 Merritt 7, 5th Floor, Norwalk, CT. Interested individuals or organizations may participate in the public hearing in person or by telephone. Individuals or organizations that want to participate must also provide by the September 18 deadline a written notification of that intent and a copy of written comments addressing the standards proposed in the Exposure Draft. Further details can be found in the Exposure Draft, which can be downloaded free from the GASB website, email@example.com.
About the Governmental Accounting Standards Board
The GASB is the independent, not-for-profit organization formed in 1984 that establishes and improves financial accounting and reporting standards for state and local governments. Its seven members are drawn from the Board’s diverse constituency, including preparers and auditors of government financial statements, users of those statements, and members of the academic community. More information about the GASB can be found at its website, www.gasb.org.