British companies involved in PFI work are confused about how to report projects on balance sheets because of international accounting standards introduced this year.

The standards failed to define how companies should report PFI, because in the past each European country had a different model.

A committee had been charged with interpreting the different models and producing draft models. However, contractors and financial advisers have complained that they are no clearer about how to report PFI at the interim stage, at the end of July and at year-end in December.