CONCESSIONS (IFRIC 12 - ICPC 01) Exercise: Portuga Concesses S.A. won the bidding for the caretaking and maintenance of a park in the city of So Paulo. This park already has an infrastructure in place, however, it will be necessary not only the improvement of the existing infrastructure, the implementation of new attractions in order to to encourage visits to the park.

According to the following information, make the accounting at the initial moment, and in the first year of the concession, indicating the accounting transactions, balance sheet and income statement at the initial moment and 20X1.

a) The main consideration for Portuga Concessions will be the entrance fees for visitors park visitors. b) Contractually, the concession has a term of 10 years. c) There are no additional assets that the grantor passed to the concessionaire. d) For the purpose of financing the work, Banco Lisboa granted a loan of of $ 15,000,000.00 to be paid in month 36. For didactic purposes, it is not necessary to calculate the provision for interest. e) The concession term is 10 years, and the estimated cost of improvement works is $10,000,000 to be paid in cash, referring to the expenditures to be expended during the concession period. For didactic purposes, it is estimated that this value is already at present value. f) The beginning of the concession will be on 01/01/2021. g) For the beginning of the operation, it was necessary a capital contribution from partners and shareholders of $ 1,000,000. h) According to the economic study, it was estimated that the number of visitors to the park of 1,500 people per day, in a year of 360 days and an entrance fee of $10. For didactic purposes, consider the $10 as the present value over time. value over time. i) According to the concession contract, the concessionaire must remunerate the grantor for the the grantor for the use of the entire infrastructure in 10 annual payments of $ 2.000.000. Consider the payment of the grant in the year subsequent to the generator. j) For the provision of service, there was an annual total of $ 900,000 of expenses operating expenses.