13. PFI transactions should be accounted for in Departmental Resource Accounts (DRAc) based on the guidance found in IFRIC 12 - Service Concession Contracts as amended in the Financial Reporting Manual and JSP 472 Resource Accounting Policy Manual.
14. To be within the scope of IFRIC 12, the PFI contract arrangement must contractually oblige the private sector contractor to provide the services related to the infrastructure asset to the public sector. Contracts that do not involve the transfer or creation of an infrastructure asset for the purpose of the contract fall outside the scope of IFRIC 12, as do arrangements that do not involve the delivery of services to the public sector.
15. The assets will be recognised on the Department's Balance Sheet specifically where:
• The Department controls or regulates what services the operator must provide with the infrastructure, to whom it must provide them and at what price; and
• The Department controls, through beneficial entitlement or otherwise, any significant residual interest in the infrastructure at the end of the term of the arrangement;
16. Project Teams are advised in the first instance to consult with their Financial Controller/Chief Accountant on the specifics of the accounting treatment for their project or when the substance of the contract falls outside the scope of IFRIC 12. Further guidance on how to account for PFI transactions for the DRAc can be found in JSP 472 and the Accounting Policy team within the Director Financial Management (DFM) organisation will be able to assist with any technical accounting queries.