The Public Finances (Accounting Standards) (Amendment) (Jersey) Order 2008.

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

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demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

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A decision made (01/12/2008) regarding: The Public Finances (Accounting Standards) (Amendment) (Jersey) Order 2008.

Decision Reference: MD-TR-2008-0138
Decision Summary Title:	The Public Finances (Accounting Standards) (Amendment) (Jersey) Order 2008		Date of Decision Summary:	22nd November 2008
Decision Summary Author:	Amy Taylor Head of Financial Reporting		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Agreement of Order – Accounting standards to be adopted for the States of Jersey’s Annual Financial Statement		Date of Written Report:	22nd November 2008
Written Report Author:	Amy Taylor		Written Report : Public or Exempt?	Public
Subject: The Public Finances (Accounting Standards) (Jersey) Order 200-
Decision(s): The Minister made the Public Finances (Accounting Standards) (Amendment) (Jersey) Order 2008.
Reason(s) for Decision: To set by Order the revised Accounting policies and standards to be followed by the States in the production of the 2008 Accounts.
Resource Implications: None.
Action required: Department to forward the signed and sealed Order to the States Greffe without delay for subsequent presentation to the States Assembly.
Signature:		Position: Senator Terry Le Sueur, Treasury and Resources Minister
Date Signed: 1st December 2008		Date of Decision: 1st December 2008

The Public Finances (Accounting Standards) (Amendment) (Jersey) Order 2008.

TREASURY AND RESOURCES

Agreement of Order – Accounting standards to be adopted for the States of Jersey’s Annual Financial Statement

1. Purpose of Report

The purpose of this report is to gain approval of an Order, required under Article 32 of the Public Finances (Jersey) Law 2005 specifying the basis on which the States of Jersey’s 2008 Annual Financial Report and Accounts will be prepared. This Order will amend the Public Finances (Accounting Standards) (No. 2) (Jersey) Order 2007 which was followed for the production of the 2007 Annual Financial Report and Accounts.

2. Background

The Public Finances (Jersey) Law 2005 states that –

“Treasurer to prepare annual financial statements in respect of accounts of the States”

(1) The Treasurer must –

(a) prepare an annual financial statement in respect of the accounts of the States for a financial year within 3 months of the end of the year; and

(b) send the statement to the Comptroller and Auditor General for auditing.

(2) The statement must be prepared in accordance with –

(a) generally accepted accounting practice (GAAP); and

(b) accounting standards prescribed by an Order made by the Minister.

A project is currently underway to implement GAAP based accounting and budgeting within the States. Progress has been made in moving toward GAAP compliance in a number of areas.
When the Law was originally drafted the intent had been that Article 32 would enable the States accounts to be prepared in line with UK GAAP or with other accounting standards (such as International Accounting Standards) as prescribed by an Order made by the Minister, thus allowing the States accounts to be prepared in line with accounting standards prescribed in an Order. As the States is in transition to GAAP based accounts, this report recommends the amendment of the existing Order.
The change from the previous order relates to the clarification of the accounting policies to be adopted for the recognition, measurement, presentation and disclosure of Financial Instruments. The change will have no impact on how Financial Instruments are measured but will improve disclosures. The accounting policies to be adopted are in line with the draft Jersey Financial Reporting Manual.

2.5 The proposed Public Finances (Accounting Standards) (Amendment) (Jersey) Order 2008 is attached.

3. Recommendation

3.1 That the Law Draftsman be requested to draft the necessary Order for signing by the Minister for onward transmission to the next available States sitting.

4. Reason for Decision

4.1 To set by Order the Accounting policies and standards to be followed by the States in the production of the 2008 Accounts.