A Discussion on the Financial Effects of the Adoption of Interpretation IFRIC 12 - Concession Contracts

Abstract

From the context of international convergence of accounting standards and the imminent adoption of the standard that guides the accounting treatment of concession contracts for companies that provide public services, IFRIC 12, which has great relevance to a range of companies operating under concession, this study consists of a discussion based on the reports of companies that have adopted IFRIC 12 and the potential effects of adopting this standard in Brazilian companies. This is a search for exploratory purposes, with theoretical and qualitative approach, based on documents and bibliographic material. In the companies analyzed, the accounts or groups of accounts with major changes with the adoption of IFRIC 12 are: fixed assets, intangible assets, accounts representing financial assets and provisions for maintenance and repairs, in addition to the revenue account. It is due to the experience of other companies, the main effect of the adoption of IFRIC 12 companies for utilities operating in Brazil will be to changes in the Assets composition structure, since the standard does not allow the recognition of the infrastructure related to concession as operator fixed assets, currently common practice in Brazil. The understanding of the issues of the standard to assume also that the group intangible assets and accounts representing financial assets will have greater representation and relevance between the asset accounts, resulting from the recognition criteria for revenue arranged in the standard.