Consolidated financial statement 2011 - Aquafin

The only impact that the conversion has on results
concerns the results of the projects in hand is on behalf of
third parties (commercial projects in progress).
On the date of the switch (31/12/2010), the group did not
have the necessary information to be able to apply the
percentage of completion methodology for those projects.
In 2010, those projects were still being processed in
accordance with the BE GAAP completed contract method.
The concrete impact of the conversion to IFRS amounts
to €369 k.
From 2011, those projects were being processed
consistently in accordance with the percentage of completion
method also under BE GAAP.
Notes to the consolidated balance sheet
EXPLANATION 5.0. CONCESSION CONTRACTS
(IFRIC 12
IFRIC 12 concerning services based on a concession
agreement is applied in the consolidated financial statement
of Aquafin.
n
Aquafin activities
Aquafin NV was established in 1990 by the Flemish Region
to accelerate the development of the supramunicipal
sewerage infrastructure. In order to achieve that objective,
the Flemish Region sets out Aquafin's assignments every year
in a programme. The Vlaamse Milieumaatschappij (Flemish
Environmental Agency) monitors Aquafin's economic and
ecological results. For the execution of this assignment,
a management agreement has been drawn up between
Aquafin and the Flemish Region. Amendments to the original
management agreement are set out in addenda.
In the context of the management agreement, Aquafin
collects the wastewater from the Flemish households in main
sewers and transports it to treatment plants. For that purpose,
Aquafin first expanded the necessary infrastructure:
collectors for wastewater, pumping stations and wastewater
treatment plants. Aquafin prefinances the projects awarded
and the drinking water companies repay the investments.
From projects delivered from 1 January 2009, the repayment
term is 15 years for the electromechanical works and 30 years
for the construction works.
Aquafin is also responsible for the maintenance and
operation of the supramunicipal sewer systems and the
wastewater treatment plants. The treated wastewater must
comply with Flemish and European standards.
Outside the management agreement, Aquafin has also
developed a specific offering for cities and municipalities.
Several cities and municipalities have outsourced the
complete installation and maintenance of their sewers to
Aquafin. Several companies also have their wastewater
treated by Aquafin.
The most important part of the Aquafin assets is used
in the context of a concession agreement. More specifically,
it concerns assets that are used to carry out the tasks under
the management agreement with the Flemish Region.
n Applicability of IFRIC 12
The interpretation IFRIC 12 - Service Concession Agreements
applies to public-private agreements if the following
conditions are satisfied:
• the grantor controls or regulates the services that the
operator is required to provide with the infrastructure,
whom those services are to be delivered to, and the price;
• the grantor controls through ownership the ultimate
right; in other words, the grantor has control over any
significant residual value in the infrastructure at the end
of the life of the agreement.
Infrastructure assets within the scope of the agreement
are assets built or acquired for use within the context of
the concession agreement or existing infrastructure to which
the operator has been granted access.
The interpretation is based on the concept of 'control',
i.e. whoever controls the right of use of the infrastructure.
Consolidated financial statement
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