What is PFI accounting?
A private finance initiative (PFI) is a way of financing public sector projects through the private sector. PFIs alleviate the government and taxpayers of the immediate burden of coming up with the capital for these projects. In the United States, PFIs are also called public-private partnerships.
What is the difference between PFI and PF2?
The PFI and its successor, PF2, are forms of Public Private Partnerships (PPPs). In a PFI or PF2 deal, a private finance company – a Special Purpose Vehicle (SPV) – is set up and borrows to construct a new asset such as a school, hospital or road.
What does PFI stand for in healthcare?
What is PFI? The private finance initiative (PFI) is a way of funding public capital projects – such as NHS hospitals – using private sources of money to pay for the upfront costs of their design, build and maintenance.
What is a PFI forecast?
Financial forecast: Prospective financial statements that present, to the best of the responsible party’s knowledge and belief, an entity’s expected financial position, results of operations and cash flows.
What has replaced PFI?
Hammond announced in last year’s Budget that the government would end the use of the PFI and its successor PF2 schemes.
What does PF2 mean?
PF2
| Acronym | Definition |
|---|---|
| PF2 | Private Finance 2 (UK) |
What does PFI Western Store stand for?
Preferred Farmers Incorporated
PFI Western Store, Home of BootDaddy, originated in 1975 as Preferred Farmers Incorporated. Today, our 50,000 square-foot retail center has helped establish PFI as a unique Western retailer like no one else.
What is Private Finance Initiative (PFI)?
The Private Finance Initiative (PFI) is a procurement method which uses private sector investment in order to deliver public sector infrastructure and/or services according to a specification defined by the public sector.
Do you have an accounting model for PFI accounting?
We developed an accounting model which did the job, subject to a number of simplifying assumptions. In parallel, the Department of Health commissioned another major accounting firm to prepare a detailed accounting model which attempted to cover every element of PFI accounting.
Are public sector PFI schemes here to stay?
Despite the criticisms existing schemes are here to stay and new schemes are in the pipeline. Public sector bodies with PFI schemes need to be aware of how they are accounted for and the pitfalls that can be avoided by having a sound understanding of the basic principles that underpin the accounting approach.
Does the discount rate need to include a premium in PFI?
If, for example, one is using a “success-based PFI” in which one or more uncertain, conditional events are assumed to be resolved favorably, then the discount rate must include a premium, such as a specific company risk premium (SCRP) or additional risk premium (ARP) to properly adjust for this assumption.