Accounting for the private finance initiative

Heald, D. and Geaughan, N. (1997) Accounting for the private finance initiative. Public Money and Management, 17(3), pp. 11-16. (doi: 10.1111/1467-9302.00076)

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This article examines how the context out of which the PFI emerged has conditioned its implementation. Attention is directed, in particular, towards how public expenditure is scored for the purposes of the national accounts and for public expenditure planning. The Treasury’s decision to substitute accruals for cash accounting across central government has significant implications for the accounting treatment of PFI assets. Certain important distinctions are analysed, notably that between assets which generate revenue streams from third-party payers and those which do not. The authors conclude that disclosure practices must give primacy to transparency about future obligations, over claims to commercial confidentiality.

Item Type:Articles
Glasgow Author(s) Enlighten ID:Heald, Professor David
Authors: Heald, D., and Geaughan, N.
College/School:College of Social Sciences > Adam Smith Business School > Accounting and Finance
Journal Name:Public Money and Management
ISSN (Online):1467-9302
Published Online:26 March 2010

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