8.44 If the value of the land increases in the future due to the operation of overage provisions, the debtor will be increased and the resultant balance written-off over the remaining contract life. The increase in the debtor will be matched by a credit adjustment to the NHSScotland body's operating cost statement (profit on the sale of fixed assets) at the point when the consortium recognises the disposal of the land for an increased value.
8.45 The situation may arise where the proceeds from the land sale exceed the annual payments. In such a case, the accounting principles are no different; however, the NHSScotland body should consider whether a lump sum for the excess or a future income stream delivers best value for money. Whether a lump sum or income stream is chosen the financial impact on the RRL would be immediate upon recognition of a profit on sale.