10. Acquisition teams should determine the appropriate treatment for their PFIs for both budgeting/planning and DRAc reporting using the ESA95 guidance provided by HMT and IFRIC 12 guidance contained in JSP472.
11. Acquisition teams no longer need to engage directly with the NAO in the procurement process to agree in principle the correct Balance Sheet assessment. However, after contract signature the IFRIC 12 classification assessment will be audited by the NAO as part of its normal audit of the Departmental Accounts.
12. MOD PFU is available to provide advice to acquisition teams having difficulty applying this guidance. Borderline ESA95 classification assessments may require approval from HM Treasury. In such instances, the MOD PFU can help the acquisition team present a case to HM Treasury.
13. The acquisition team's assessment of the Balance Sheet classification under both ESA 95 and IFRIC 12 should be referred to the DE&S (or other appropriate) Financial Accounting Team2 and must be approved by the relevant 1* financial controller.
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2 DE&S contact is Louise Ralph on ABW - 9679 32879 or 0306 79 32879