The GASB has issued an Exposure Draft on Public-Private and Public-Public Partnerships and Availability Payment Arrangements.

A public-private or public-public partnership arrangement (PPP) is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use an infrastructure or other nonfinancial asset for a period of time in an exchange or exchange-like transaction. Some PPPs meet the definition of a service concession arrangement. Some PPPs also meet the definition of a lease.

This proposed statement also provides guidance for accounting and financial reporting for availability payment arrangements (APAs) in which a government compensates an operator for services that may include designing, constructing, financing, maintaining, or operating an underlying infrastructure or other nonfinancial asset for a period of time in an exchange or exchange-like transaction.

The proposed statement is intended to improve financial reporting by providing uniform guidance that would result in greater consistency in reporting.

The requirements of this proposed statement would be effective for fiscal years beginning after June 15, 2021 and all reporting periods thereafter.

Comments are due on the Exposure Draft by September 13, 2019.

The full text of the Exposure Draft is available here.

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