BIM64085 - Measuring the profits (particular trades): Private Finance Initiative (PFI): accounting: FRS5 and SSAP9
FRS5 Application Note F requires that where another accounting standard (SSAP or FRS) is also relevant, the standard that contains the more specific provisions is to be applied.
If the PFI project involves the design and construction of a PFI property, it may be more appropriate to adopt SSAP9 바카라 사이트˜Stock and long-term contracts바카라 사이트™ principles during the construction period. This means that the construction costs are debited to work-in-progress. Once the property or a particular construction phase is completed, FRS5 will apply. In such circumstances the interaction of SSAP9 principles and FRS5 will result in the recognition of a 바카라 사이트˜sale바카라 사이트™ in the profit and loss account and the property being reported as finance debtor on the operator바카라 사이트™s balance sheet (see BIM64080 and Examples 3 and 6 at BIM64150 and BIM64165).
However, there may be circumstances where SSAP9 principles are not used and FRS5 is adopted from the outset (see Examples 1, 2, 4 and 5 at BIM64140, BIM64145, BIM64155 and BIM64160).
HMRC officers should refer any questions, concerning the application and interaction of SSAP9 principles and FRS5, to their local compliance/advisory accountant.