This publication looks at the impact of the Private Finance Initiative (PFI) in the light of the impending adoption of International Financial Reporting Standards (IFRS) by the UK Government from 2008/2009 onwards.
The new standards are likely to bring most PFI projects on balance sheet and so the accounting driver for public bodies to procure projects through PFI will disappear. The paper asks whether this matters. Has PFI brought about the benefits hoped for? To the extent it has, what has been the contribution of private finance? How important is the 'F' in 'PFI'? And will the impending accounting changes actually open up the way towards structuring projects more effectively?