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Private Finance Initiative: Standards

Volume 495: debated on Monday 6 July 2009

To ask the Chancellor of the Exchequer what his Department's policy is on the use of international financial reporting standards in the accounting treatment of private finance initiative liabilities. (283512)

Central Government financial reporting from 1 April 2009 is based on EU adopted International Financial Reporting Standards (IFRS), adapted or interpreted for the public sector context.

The IFRS based accounting policy for Public Private Partnership arrangements, including for PFI contracts, is detailed in the Government Financial Reporting Manual (FReM).

The FReM accounting for PFI is based on International Financial Reporting Interpretations Committee (IFRIC) Interpretation 12 Service Concession Arrangements, as interpreted for the public sector.