In Jan 1 20x0 entered into a SCA for waste water facility with an operator. a grantor is to make payments of P90000 annually for SCA for 20 years period and the useful life of the asset is 40 years. the fair value of the asset is not known but the grantor can buy the services provided by the operator at P14515 annually. the grantor has incremental cost of borrowing of 6.999 %

a) how should grantor measure the facility in initial recognition

b) what amounts will grantor include as at dec 31 20x0 for

i) the asset

ii) related liability

c) what expense would grantor recognize in its financial performance for 20x9in respect of SCA