To ask the Chancellor of the Exchequer whether public bodies are required to meet international generally accepted accounting principles for accounts published after July 2008; whether he expects compliance to ensure that the costs of the private finance initiative will be included on the public balance sheet; and what effect he expects inclusion to have on total Government borrowing. (130612)

As set out in paragraph 6.59 of the 2007 Financial Statement and Budget Report, the annual financial statements of Government Departments and other entities in the public sector are currently prepared using accounting polices based on UK generally accepted accounting practice. From financial year 2008-09, the annual financial statements of Government Departments and other entities in the public sector, will be prepared using international financial reporting standards, adapted as necessary for the public sector. There is as yet no EU-adopted IFRS standard setting out how the public-sector elements of PFI projects should be reported. It is too early to say what an IFRS standard, once introduced, will mean on a deal-by-deal basis for each PFI contract.