§ Matthew TaylorTo ask the Chancellor of the Exchequer on what date the revised accounting treatment for PFI transactions will be recorded in the government accounts; and if he will make a statement. [80126]
§ Ruth KellyThe government's policy when accounting for PFI contracts is to follow Generally Accepted Accounting Practice (GAAP). In particular, Application Note F to Financial Reporting Standard 5—Private Finance Initiatives and Similar Contract complemented by the Treasury Taskforce Technical Note No.1(Revised) How to Account for PFI Transactions.
The guidance requires that PFI projects are recorded in accounts in the year the project becomes operational.