The 2008 budget announced the delay of implementation of new accounting methods for the public sector - International Financial Reporting Standards (IFRS) - by one year.  Recognising the scale of the challenge, particularly in relation to PPP/PFI accounting, government accounting policies will now require full implementation of IFRS for the year ended 31 March 2010.

Mark Williams from Deloitte’s government accounting advisory team said ‘The private sector had five years to make the transition to IFRS and while nobody missed the deadline in the private sector this was not always assured.

“Our experience of IFRS transition is that the "devil is in the detail".  It is only once IFRS transition is underway that the scale of the challenge becomes clear.

"Considerable progress has already been made but a year delay does not mean that public bodies can park the issue, it is paramount that public bodies keep up the momentum.”

PFI/PPP to remain off the Government’s balance sheet for another year
Mark Williams continued ‘The incidental result of delaying IFRS implementation is that the Government will not need to bring up to what some commentators say could be £30 billion of PFI/PPP spending onto its balance sheet for another year. Although it was never certain that it would become Government debt it clearly has significant implications for the Government’s debt position and its ability to comply with its own fiscal rules.”

Ends

Notes to editors

About Deloitte
In this press release references to Deloitte are references to Deloitte & Touche LLP which is among the country’s leading professional services firms, providing audit, tax, consulting and corporate finance services. Deloitte & Touche LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein whose member firms are separate and independent legal entities.  Neither DTT nor any of its member firms has any liability for each other’s omissions.  Services are provided by member firms or their subsidiaries and not by DTT.  Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority.  The information contained in this press release is correct at the time of going to press.