This Appendix sets out a copy 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.
NB In this Application Note the following terminology is used:
(a) the entity (usually a public sector body) that acquires services under the Private Finance Initiative (PFI) contract is referred to as the 'purchaser'.
(b) the entity (usually a private sector body) that provides services under the PFI contract in return for payments from the purchaser is referred to as the 'operator'.
(c) the road, hospital, prison etc that is the subject of the PFI contract is referred to as the 'property'. The word 'asset' is reserved for items that are recognised in the balance sheet.