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hi everyone welcome to yet another financial modeling tutorial by alfonso pulido this time we are going to talk about concession agreements accounting better known as e3 public concessions are a wide spread subject of project finance mobiling a concession occurs when a public authority assigns the use of a public domain asset or service in return of a long-term investment to develop it on the rift road the right to use a public domain asset or service acquires the form of either a financial asset or an intangible asset concurrently revenues have to be recognized alongside the usage of the asset following es18 in this video we will build a financial asset and will recognize revenues accordingly to many accounting standards well its easier than it seems lets get into it okay so lets get started uh well need a couple of parameters the margin on opex and the marginal capex ill explain in a while what these two mean then just a period a little bit of formatting here thats it okay we