Accounting
Agencies must prepare a statement of accounting treatment to assess the balance sheet, income statement and cash flow impacts of a PPP project. This statement should also include the estimated full contingent exposure to Government, including:
• the termination liability, in the case of private party default or voluntary termination; and
• the sum of any individual actual or contingent liabilities under specific clauses of the project delivery contract, combined with the probability of each outcome.
Agencies should refer to the relevant accounting standards and Treasury's Accounting Policy for Privately Financed Projects8. Where reliance is placed on professional accounting opinions, copies of these should be attached to the statement.
The Budget and Financial Management Directorate of NSW Treasury is responsible for accounting policy guidelines. Agencies should consult with
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8 See Treasury Policy and Guidelines Paper TPP06-8 Accounting Policy - Accounting for Privately Financed Projects