PFI deal retenders
PFI deal retenders
- 1999
- Contract Journal 398 (6227) 26 May 1999, 1(1) .
Government plans to introduce new accounting rules may mean local authority private finance initiative (PFI) deals have to be renegotiated. Currently PFI deals must pass the 'contract structure test' which dictates that at least 20% of the the contractor's income from the contract must be at risk against poor performance or a low level of usage. The DETR is considering replacing this with a more rigorous accounting analysis based on the Accounting Standards Board's recent ruling that PFI deals must be on-balance sheet.
ACCOUNTING RULES
ACCOUNTING STANDARDS BOARD
CONTRACT STRUCTURE TEST
LOCAL AUTHORITIES
PFI
PRIVATE FINANCE INITIATIVE
Government plans to introduce new accounting rules may mean local authority private finance initiative (PFI) deals have to be renegotiated. Currently PFI deals must pass the 'contract structure test' which dictates that at least 20% of the the contractor's income from the contract must be at risk against poor performance or a low level of usage. The DETR is considering replacing this with a more rigorous accounting analysis based on the Accounting Standards Board's recent ruling that PFI deals must be on-balance sheet.
ACCOUNTING RULES
ACCOUNTING STANDARDS BOARD
CONTRACT STRUCTURE TEST
LOCAL AUTHORITIES
PFI
PRIVATE FINANCE INITIATIVE