Examination of public private cooperation models and build-operate-transfer model within the context of government accounting standards and international accounting standards

With the increase in the world population, infrastructure, urbanization, transportation and health problems have started to increase in all countries. While countries are developing, the need and demand for public services in these areas has increased. The resources that governments have to meet these increasing needs have been insufficient. As the population expanded, it became more difficult for the public to provide all of these services with its own funds, and it was necessary to find solutions for funding. As a solution to this difficulty, the idea of cooperation between the public and private sectors in the execution of public services emerged in the 1980s. This idea led to the emergence of Public Private Partnership projects. There are basically four models in Public Private Partnership projects. These are Build-Operate-Transfer (BOT), Build-Operate (BO), Build-Lease-Transfer (BLOT) and Transfer of Operating Rights (ToR) models. Within the scope of this study, the BOT contract model was examined and the application of the model was explained with an example. There are three approaches to reporting the BOT model. In the first approach, in cases where progress payments for construction costs are guaranteed by the government, the contractor company reports the guaranteed amount as a financial assets. In the second approach, the relevant amount is reported as a right on intangible assets under the assumption that the contractor firm has taken over the right to use the asset for a certain period of time. The third approach is the mixed model, where the two conditions are met together, where the relevant amount is reported as both a financial asset and an intangible asset. There are two standards for accounting and reporting of PPP models in the public and private sectors. These are the Government accounting standards IPSAS 32 Service Concession Agreements and the private sector accounting standard IFRIC 12 Service Concession Agreements. In this study, these two standards are examined indetail. Keywords: Public Private Partnership (PPP), IPSAS 32, IFRIC 12, Build-Operate-Transfer (BOT)