9.2  Accounting Issues

The accounting for PPP projects is complex and does not fall easily within the existing scope of commercial arrangements considered under the current Framework of the Australian Accounting Standards Board (AASB).  As a result, this issue has been subject to considerable public debate.

Generally, Treasury and/or Finance departments across jurisdictions are responsible for accounting policy guidelines and should be consulted by the Procuring Agency when the accounting treatment for any particular PPP transaction is being considered. Ideally, the accounting treatment should be determined prior to committing to the PPP contract (even though the project assets are usually not constructed at this stage).

Treasury and/or Finance departments must be kept informed of the likely balance sheet status of PPP projects.  Early consultation with Auditor-General offices on PPP accounting is also desirable to ensure that the correct accounting framework and any relevant accounting standards are appropriately considered and applied.