THE USE OF ACCOUNTANCY INPUBLIC-PRIVATE PARTNERSHIP DECISION MAKING

Long-term arrangements with the private sector are becoming an increasingly common means used by governments to discharge their public responsibilities. Making decisions about arrangements, whereby a government or other public sector entity grants contracts for the supply of public services to private sector operators, the very important factor remains by accounting and reporting. The most difficult problem is the control of the assets remains in public hands but used by the private sector operator and the kind of revenues from the private sector operator activities: construction activities, as well as for operating and maintaining the public sector infrastructure. Polish regulations of accounting don’t deal with this mater, so there should be used international standards - IFRIC 12. IFRIC 12 shows how service concession operators should apply existing International Financial Reporting Standards to account for the obligations they undertake and rights they receive in service concession arrangements. Interpretation specifies whether the infrastructure is to be recognised as a property, plant and equipment of the operator and the accounting model that applies to the rights received by the operator in different circumstances. IFRIC 12 draws a distinction between two types of service concession arrangement. In the first one, the operator receives a financial asset - an unconditional contractual right to receive cash or another financial asset from the government in return for constructing or upgrading the public sector asset. In the second, the operator receives an intangible asset - the right to charge for using of the public sector asset that it constructs or upgrades. There is a possibility that both types of arrangement can exist within a single contract, and they must be separately measured, account and report in the financial statement. The operator of a service concession arrangement recognizes and measures revenue in accordance with Standards 11 and 18 for the services it performs