delay to application of International Financial Reporting
Standards for PFI
It has been confirmed that the International Financial Reporting
Standards shall not be applied to Government departments until the
financial year beginning April 2009. Whilst this benefits new PFI
projects for the next 12 months, economists fear that Gordon
Brown's sustainable investment rule (that Government net debt
should be kept below 40% of Gross Domestic Product) will be further
threatened owing to the fact that the International Financial
Reporting Standards will force many capital costs from private
sector to be included on public sector balance sheets, thus
threatening the financial usefulness of PFIs to the public
sector.
For more information, please contact Richard Wade, head of Blake
Lapthorn’s Construction and Development group on 01865
254244; email richard.wade@bllaw.co.uk
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