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Pursuing financial reality of the circular road

December 23, 2019
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Finance
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In this case of Road-as-a-Service (RaaS) the Coalition Circular Accounting (CCA) has done a deep dive into the circular business model and the need for more guidance on applying accounting rules for a Circular Service Contact (CSC), in particular for a Road-as-a-Service agreement. Our main conclusion is that there is no necessity for adapting or fundamentally changing the accounting rules, but that we have to change our accounting perspective. In attracting capital, the ratios may change negatively, which require another risk assessment by financiers.

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