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(a) A concession company, WaterAway, has completed the construction of a wastewater plant. The plant will be transferred to the public sector unconditionally after 25 years. The public sector (the grantor) makes payments related to the volume of wastewater processed.
Discuss how this will be dealt with in the statement of comprehensive income and statement of financial position of the concession company.
(b) A concession company, LearnAhead, has built a school and receives income from the public sector (the grantor) based on the availability of the school for teaching.
Discuss how this will be dealt with in the statement of comprehensive income and statement of financial position of the concession company, under IFRIC 12.
