PFI projects that are classified on-balance sheet means that their debt is already included in Public Sector Net Debt and Public Sector Net Borrowing. Those classified off-balance sheet, the capital funding will be reclassified to the public sector leading to an increase in Public Sector Net Debt and Net Borrowing.
PFI projects are classified on- or off-balance sheet since 1 April 2009 according to the International Financial Reporting Standards (IFRS), the European System of Accounts (ESA) and the Generally Accepted Accounting Principles (GAAP). This information is included in the annual HM Treasury listing of current PFI projects. Six of the buyout projects - Hexham Hospital, Lancashire Waste, Tube Lines, West Park Hospital, Dyfed-Powys Police Station and Ruthin County Hall - were on-balance sheet for the IFRS standard. Only two were classified on-balance sheet for the ESA and GAAP standard with the rest being off-balance sheet or their status unknown. Only 23 projects were classified off-balance sheet under IFRS out of 724 current projects in the HM Treasury 2015 listing. Information on 50 projects was not known.