A Prudential Borrowing loan will be recorded in the Authority's accounts and in consolidated figures for national debt, regardless of whether a loan from the PWLB or private sector is used.
The balance sheet treatment of the underlying assets of the project will depend on the proposed contractual arrangements and the degree of risk transfer to the private sector.4
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4 Historically PFI schemes have been off balance sheet based on an evaluation of the project risks, but International Financial Reporting Standards (IFRS) is leading to a re-examination of that status.