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Issue detail

Issue
24. Public-private partnerships (PPPs) (including buy-own-operate-transfer (BOOT) schemes)
Issue description and recommendation

Public-Private Partnerships (PPPs) are complex legal arrangements designed to share the control and the risks and rewards of a set of fixed assets between a private enterprise and a public unit, normally a unit of the general government sector. In most PPPs, the assets are legally owned and used by the private enterprise to produce a specified category of services for several years, and then the government gains operational control and legal ownership of the assets, often without payment. The 1993 SNA treatment of operating and financial leases are not sufficient to derive an appropriate accounting treatment for PPPs and there are no other guidelines given about PPPs There are two major issues to be resolved. The first is to decide whether the private enterprise or the government is the economic owner of the fixed assets. The second is to decide the appropriate recording for transactions between the private enterprise and the public unit during the period covered by the PPP arrangement.

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Chapters affected by this issue, and their status (For more information click corresponding chapter from the list)
  No draft yet, AEG/world review draft, Final draft
10. The capital account
12. The other changes in assets accounts
13. The balance sheet
22. The general government and public sectors

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