Government of Jersey

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
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A decision made (17/07/2007) regarding: Agreement of Order – Accounting standards to be adopted for the States of Jersey’s Annual Financial Statement.

Decision Reference: MD-TR-2007-0136
Decision Summary Title:	Agreement of Order – Accounting standards to be adopted for the States of Jersey’s Annual Financial Statement		Date of Decision Summary:	12th December 2007
Decision Summary Author:	Jason Turner, Deputy Treasurer		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:	12th December 2007
Written Report Author:	Jason Turner, Deputy Treasurer		Written Report : Public or Exempt?	Public
Subject: Agreement of Order – Accounting standards to be adopted for the States of Jersey’s Annual Financial Statement
Decision(s): The Minister agreed that an Order be prepared based on the attached accounting policies.
Reason(s) for Decision: To set by Order the Accounting policies and standards to be followed by the States in the production of the 2007 Accounts.
Resource Implications: None
Action required: The Law Draftsman is requested to draft the necessary Order to be made and signed by the Minister in due course, for subsequent notification to the States.
Signature:		Position: Senator T.A. Le Sueur, Treasury and Resources Minister
Date Signed: 17th December 2007		Date of Decision: 17th December 2007

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

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 2007 Annual Financial Statement and accounts will be prepared. This Order will replace the Public Finances (Accounting Standards) (Jersey) Order 2007 which was followed for the production of the 2006 Annual Financial Statement 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 principles (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. In particular, the 2007 accounts will include a new format and revised content for the Treasurer’s report. Work is currently underway to implement GAAP based processes, practices and procedures in other areas, such as capital accounting.
When the Law was originally drafted the intent had been that Article 32 would enable the States accounts to be prepared in line with 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 drafting of an Order indicating the accounting policies to be followed by the States.

The main change from the previous order relates to pensions schemes. The proposed order requires disclosure of information in accordance with Financial Reporting Standard 17, even where the scheme is not a conventional defined benefit scheme and the employer’s liability is limited.

2.5 The proposed Accounting standards to be included in the order are attached at Appendix A.

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 2007 Accounts.