Amendment Proposed for Service Concession Arrangements
Businesses have asked for additional guidance on Topic 853, Service Concession Arrangements, and the Financial Accounting Standards Board (“FASB”) is answering the call. The FASB has issued Proposed Accounting Standards Update No. EITF-16C, Service Concession Arrangements (Topic 853) — Determining the Customer of the Operation Services: A Consensus of the FASB Emerging Issues Task Force, which includes a clarification to the customer’s identity in certain infrastructure deals between governmental entities and private-sector companies. The proposal calls for a government entity to be labeled the customer in transactions under Topic 853.
Comments are due Friday, January 6.