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This was a negotiated part of the 2004 nGMS contract and was designed to promote and reward high quality evidence based care.
Full document by BMA (Duncan Bland) 2008 here which reports on the success and advantage of QOF as a model of rewarding good practice.
QOF Visit guidance and FAQs available at Primary Care Commissioning website here
QOF changes 2012 QP A&E Indicators guidance to PCOs and practices Nov 2011
QOF 2011/2012 full Guidance April 2011
QOF Quality and Productivity Indicators Guidance and FAQs May 2011 NHSE & BMA
Changes to QOF 2011/2012 NHSE webpage
Excel spreadsheet Ready reckoner for QP prescribing
Focus on QOF payments (GPC document April 2011)
Prevalence - the formulae for prevalence has been through some changes (square rooting and 5% threshold)and there have been some unintended consequences. This e-mail from the BT helpdesk goes some way to explaining what has happened and why and provides some useful links to the BMA website to explain the details of the calculations.
FS updated Aug 2011