International Financial Reporting Standards (IFRS) apply to public sector accounts with effect from 2009-10. Departmental end-of-year accounts will be prepared on this basis, including those of national health service primary care trusts.
In preparation for the introduction of IFRS from 2009-10, the Department assessed the impact should all NHS Local Improvement Finance Trust (LIFT) projects come on to the public sector balance sheet. It was estimated that NHS LIFT assets with an aggregate value of £105 million could come on balance sheet in 2009-10.
Schemes coming on balance sheet will also create a recurring additional revenue impact in the NHS accounts. For 2009-10, it was estimated that this would amount to a total of £36 million for NHS LIFT schemes. The Department's assessment also included consideration of proposed NHS LIFT projects.
HM Treasury published consolidated budgeting guidance (IFRS updated) on 12 June 2009. This included a chapter on the budgeting treatment of private finance initiative schemes, including NHS LIFT, under IFRS. The Department is working to establish exactly how this guidance will be applied in the health sector and will issue advice and guidance to the NHS in due course.