New rules will put PFI billions on Treasury balance sheet
PFI projects previously off balance sheet will now be on the books, with new accounting rules
The government is set to adopt international accounting standards, which
could see more private finance initiatives back on its books.
Treasury officials confirmed that government will move from UK GAAP to IFRS
as of the beginning of next year.
The accounts will make government’s accounts more comparable and in line with
practice in the private sector, the FT reported.
Treasury officials acknowledged the practice would see about £40bn of
PFI projects finally on government’s
balance sheet.
Further reading:
£500bn of government debt hidden by Treasury