Special Meeting on IC 12

4 June 2009

IC Interpretation 12: Dialogue with service concessionaires

The secretariat held a roundtable discussion with the local service concessionaires to have an understanding of possible potential issues which the industry players may face in implementing IC Interpretation 12. At the meeting, the industry group generally was agreeable to the concept in IC Interpretation 12. Their concerns focused mainly on the implementation aspects of the Interpretation.

Essentially, IC Interpretation 12 provides guidance on accounting by operators for public-to-private service concession arrangements. It addresses how service concession operators should apply existing FRSs to account for the obligations they undertake and rights they receive in service concession arrangements.

In summary, IC Interpretation 12 basically draws entities to the appropriate FRSs to apply in accounting for the service concession arrangements. It therefore does not change the existing underlying principle in the related FRSs or the Framework.

The meeting was chaired by MASB Chairman En Mohammad Faiz and presented by MASB Technical Director Ms Tan Bee Leng.

Attendees comprised of some of Malaysia’s top service concessionaires Syarikat Pengeluar Air Sungai Selangor Sdn Bhd, Gamuda Berhad and Projek Lebuhraya Utara Selatan Berhad.