16. If a PFI is assessed to be On-Balance Sheet under ESA 95, the acquisition team is required to recognise the PFI fixed assets on the MOD's Balance Sheet. The fixed assets and the corresponding liability to pay for the assets are recognised when the fixed assets are expected to come into service. The recognition of the fixed assets score against CDEL.
17. The forecast depreciation charge on the PFI fixed assets is to be reported in the PR as an OCS charge (scoring to RDEL)
18. The acquisition team needs to split the planned annual Unitary Charge figures between:
• The repayment of the liability
• The financing charge associated with the liability
• The service charge
The financing charge and the service charge elements are to be reported as OCS expenditure (scoring to RDEL), whilst the repayment of the liability is treated as a Balance Sheet movement and therefore does not score against CTs.