Accounting Treatment

Local Authorities are required to account for their private finance transactions in accordance with the requirements of the Finance Reporting Standard 5 - Reporting the Substance of Transaction (FRS5) and Bidders are deemed to understand these requirements.

As part of developing the OBC for this fire and rescue service or police project, the Fire and Rescue Authority or Police Authority undertook a preliminary assessment of the PFI Reference Project against the requirements of FRS5.  That assessment demonstrated that the assets associated with the provision of the [insert details of project] would be 'off balance sheet'.

The Fire and Rescue Authority or Police Authority will continue to review FRS5 issues and keep in close contact with the Fire and Rescue Authority or Police Authority's external auditor on this issue as the Project develops.