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Old 27th Jan 2008, 19:59
  #19 (permalink)  
Roland Pulfrew
 
Join Date: Aug 1998
Location: England
Posts: 1,870
but the on-balance sheet / off balance sheet hasn't got a great deal to with Resource Accounting (RAB)
Squirrel, are you siure about that? IIRC the other gotcha under PFI & RAB is that if an asset is a PFI it is deemed to be off balance sheet then you the user (in this case it would be Air Cmd/2 Gp) would not pay the RAB "cost of capital" and "depreciation". If the asset is treated as on balance sheet then the user (Air Cmd) has to pay the RAB cost of capital and depreciation charges = UNAFFORDABLE in this case!!

Now of course these are only HMT accounting guidleines so the solution is simple - scrap the complete @rse that is RAB.
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