PREFACE

This accounting policy provides guidance for public sector entities for accounting for Privately Financed Projects (PFPs). Such projects are often complex and may not fall within the scope of existing Australian accounting standards.

The aim of the policy is to ensure a consistent approach to accounting for PFPs across the NSW public sector.

This policy adopts the requirements of Application Note F Private Finance Initiative and Similar Contracts issued in 1998 by the United Kingdom Accounting Standards Board as an amendment to its Financial Reporting Standard 5 Reporting the Substance of Transactions.

The policy also provides guidance on matters not specifically covered by Application Note F:

• Up-front contributions

• The residual interest in the infrastructure

• Associated leases of land.

This policy is applicable to all NSW public sector entities (including statutory State owned corporations) for financial years beginning on or after 1 July 2005.