Seminar on The Challenges of Implementing FRS 139

30 December 2009

Special Meeting on IC 12

The Secretariat held a meeting to discuss the implication of IC Interpretation 12 Service Concession Arrangements prior to its effective date. The due process of the issuance of IC Interpretation 12 and also the effective dates of the Interpretation in other jurisdictions were presented to members of the meeting.

It was noted in the meeting that members generally agreed with the principles of IC Interpretation 12 and the following comments were received from the public:

• Amortisation method based on toll revenue is appropriate as toll structure is predetermined contractually;

• Some suggested deferring effective and issuance date as time would be needed to study how overseas concessionaires treat subsequent highway development expenditures.

• Some suggested having disclosure exemptions

After the meeting, it was concluded that the Board will issue that Interpretation as planned. A disclosure exemption would be included in IC Interpretation 12 whereby an entity need not disclose information required under paragraph 30(b) of FRS 108 Accounting Policies, Changes in Accounting Estimates and Errors prior to the effective date of this Interpretation.