Under a Service Concession Arrangement

question 59

Multiple Choice

Under a service concession arrangement,

• A) The transferring government continues to report the transferred asset as a capital asset and any related contractual obligations as liabilities.
• B) The operating government will record the transferring government's payment or receivable, a liability for the present value of significant contractual obligations and a corresponding deferred inflow of resources for the difference between the two.
• C) Any deferred inflow of resources is recognized as revenue at the time the arrangement takes place.
• D) All of the above statements are true.

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