1.10 Government reports on two bases - departmental resource accounts treat contracts according to International Financial Reporting Standards (IFRS)3; National Accounts treat contracts according to European System of Accounts 1995 (ESA 95) standards4. It is the National Accounts which are the basis for the fiscal framework.
1.11 HM Treasury has issued a Guidance Note to Departments5 on how to classify PFI and similar transactions and continues to work closely with departments on this complex issue.
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3 http://www.hm-treasury.gov.uk/frem_index.htm
5 http://www.hm-treasury.gov.uk/d/tech_guidance_nataccounts_for_pfi.pdf