Robert J Kirk and Anthony P Wall.The Private Finance Initiative -PFI- was launched by the United Kingdom Government in 1992 in order to encourage the private sector in the UK to become more involved in public sector development projects. A key theme of the initiative was that the public should receive ‘value for money’. This article investigates the accounting issue as to whether or not the private or the public sector should record any property related to PFI projects on balance sheet. It argues that although both HM Treasury and the Accounting Standards Board (ASB- might agree on the accounting principles, the practical impact is that in order for related properties to stay off the public sector’s balance sheet, substantial risk needs to be transferred to the private sector. As a consequence of this, the objective of providing value for money to the public may not be achieved.
Public Money and Management ISSN: 0954-0962
To purchase this article you may use Ingento Pay Per View Service to view the complete article. Go to www.ingenta.com , select ‘Browse Publications’, locate the article you want and follow the on-screen instructions. You will be prompted to enter your credit card details.