1. The recent announcement (Budget 2007) that Government will prepare its accounts using International Financial Reporting Standards (IFRS) from 2008-09 onwards means that the Government Financial Reporting Manual (FReM) - issued jointly by the Treasury and the devolved administrations - needs to contain guidance on how to account for Public-Private Partnership (PPP) arrangements under IFRS, since there is no specific PPP IFRS that is directly applicable to the public sector.
2. This paper discusses how service concession arrangements, including PFI contracts, should be accounted for under IFRS.