Where the assets have been judged as being off the public sector balance sheet for the purposes of National Accounts, the MGDD guidance requires that public sector entities do not account for any build up of a reversionary interest, as was the case under UK GAAP. Rather, when the asset is transferred to government a capital grant is imputed from the private sector to the public sector and the proceeds of that capital grant are deemed to be used by the public sector to purchase the asset (so PSNI neutral).
Where departments are currently accounting for a reversionary interest through a reduction in the amount of unitary charge that is debited to the operating statement they should continue to do so, but no reversionary interest should be applied to projects signed after 1st April 2009 that are off balance sheet for National Accounts purposes only.