Which of the following is not a factor that distinguishes service concession agreements from other types of public-private partnerships? The government collects the service fees directly from the public The government retains the right to set prices or rates The government retains the right to determine of modify the services provided The government retains the rights to the asset at the end of the agreement 2) When a government receives a lump-sum payment for a multi-year service concession agreement with a private sector partner, which of the

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Which of the following is not a factor that distinguishes service
concession agreements from other types of public-private partnerships?
The government collects the service fees directly from the public
The government retains the right to set prices or rates
The government retains the right to determine of modify the services
provided
The government retains the rights to the asset at the end of the agreement
2) When a government receives a lump-sum payment for a multi-year
service concession agreement with a private sector partner, which of the
following describes the appropriate treatment in the government-wide
statements at the time the payment is received?
Recognize the full amount of the payment as revenue
Recognize the full amount as a service concession asset, a type of intangible
asset
Recognize the full amount as a deferred inflow of resources
O No financial statement recognition, only note disclosure
Transcribed Image Text:Which of the following is not a factor that distinguishes service concession agreements from other types of public-private partnerships? The government collects the service fees directly from the public The government retains the right to set prices or rates The government retains the right to determine of modify the services provided The government retains the rights to the asset at the end of the agreement 2) When a government receives a lump-sum payment for a multi-year service concession agreement with a private sector partner, which of the following describes the appropriate treatment in the government-wide statements at the time the payment is received? Recognize the full amount of the payment as revenue Recognize the full amount as a service concession asset, a type of intangible asset Recognize the full amount as a deferred inflow of resources O No financial statement recognition, only note disclosure
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