Lincoln Memorial Hospital has just been informed that a private donor is willing to contribute $5…

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Vinci (2010)

Consolidated financial statements

3

Measurement rules and methods [extract]

3.5

Concession contracts [extract]

In return for its activities, the operator receives consideration from … the grantor: the financial asset model applies. The operator has an unconditional contractual right to receive payments from the grantor, irrespective of the amount of use made of the infrastructure. Under this model, the operator recognises a financial asset, attracting interest, in its balance sheet, in consideration for the services it provides (designing, building, operation or maintenance). Such financial assets are recognised in the balance sheet under Loans and receivables, for the amount of the fair value of the infrastructure on first recognition and subsequently at amortised cost. The receivable is settled by means of the grantor’s payments received. The financial income calculated on the basis of the effective interest rate, equivalent to the project’s internal rate of return, is recognised under operating income.

3.20

Other non-current financial assets[extract]

3.20.2

Loans and receivables at amortised cost [extract]

Loans and receivables at amortised cost mainly comprise receivables connected with shareholdings, current account advances to equity-accounted companies or unconsolidated entities, guarantee deposits, collateralised loans and receivables and other loans and financial receivables. It also includes the financial receivables relating to concession contracts and Public-Private Partnerships whenever the concession operator has an unconditional right to receive remuneration (generally in the form of “scheduled construction payments”) from the grantor. When first recognised, these loans and receivables are recognised at their fair value plus the directly attributable transaction costs. At each balance sheet date, these assets are measured at their amortised cost using the effective interest method. In the particular case of receivables coming under the scope of IFRIC 12, the effective interest rate used corresponds to the project’s internal rate of return.

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