Annual Report 2012 - the Jersey Financial Services Commission

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Cash Flow Statementfor the year ended 31 December 2012Reconciliation of net income to net cash inflowfrom operating activities2012 2011£ooo£oooNet income for the year 114 637Interest received (87) (63)Depreciation charges 396 472Loss on sale of tangible fixed assets - 8Decrease in debtors and prepayments 59 82Increase in creditors 751 183Net cash inflow from operating activities 1,233 1,319Cash Flow StatementNet cash inflow from operating activities 1,233 1,319Returns on investments and servicing of financeInterest received 87 63Capital expenditurePayments to acquire tangible fixed assets (607) (237)Increase in cash 713 1,145Reconciliation of net cash flow to movement in net fundsIncrease in cash in the year 713 1,145Net funds at 1 January 10,897 9,752Net funds at 31 December 11,610 10,89736 | ANNUAL REPORT 2012
Notes to the financial statements for the year ended31 December 20121. Accounting policiesThe financial statements have been prepared under the historical cost convention, and in accordance withgenerally accepted accounting practice in the United Kingdom.A summary of the more important accounting policies is set out below.a) Income and expenditure is accounted for on an accruals basis. Regulatory and Registry fees arerecognised over the period to which they relate.b) Registry fees include only the share of fees attributable to the Commission. The Commission acts as agentin collecting the proportion of annual return fees attributable to the States of Jersey (see note 4b).c) Fixed assets are stated at cost less depreciation.Depreciation on tangible fixed assets is calculated to write down their cost on a straight line basis to theirestimated residual values over their expected useful lives.Computer equipment is depreciated over three years.Computer software costs are written off as incurred to the Income and Expenditure Account, except forpurchases in respect of major systems. In such cases, the costs are depreciated over three years.Computer systems under construction are not depreciated. Depreciation is charged when a system hasbeen completed and is in operation.Office furniture, fittings and equipment are depreciated over five years.d) Foreign currency transactions during the year have been translated at the rates of exchange ruling at thedates of the transactions.Any profits or losses arising from such translations into Sterling are accounted for in the Income andExpenditure Account.e) Costs incurred as the result of investigations and litigation are accounted for as they are incurred.Recoveries are accounted for when they have been awarded and it has become virtually certain that theywill be received.f) All leases are operating leases, and the annual rentals are charged to operating expenses on a straight linebasis over the term of the lease. The value of the rent free period that was granted upon the Commission’soccupation of its current premises has been accounted for over the term of the lease.g) The costs of defined contribution pension schemes are accounted for on an accruals basis. The costs ofannual contributions payable to defined benefit schemes operated by the States of Jersey are accountedfor on an accruals basis because the Commission is unable to obtain the information necessary to applydefined benefit scheme accounting (see note 14).h) The financial statements contain information about the Commission as an individual entity, and do notinclude consolidated financial information as the parent of a group. The Commission is exempt from therequirement to prepare consolidated financial statements because the inclusion of its subsidiaries is notmaterial for the purpose of giving a true and fair view.2. Related party transactionsThe Commission has been established as an independent financial services regulator and as such the States ofJersey is not considered to be a related party.3. TaxationThe Commission is exempt from the provisions of the Income Tax (Jersey) Law 1961, as amended.ANNUAL REPORT 2012 | 37
Page 1: Annual Report2012
Page 5 and 6: Jersey is situated off the north-we
Page 7 and 8: HighlightsPrincipal Themes During 2
Page 9 and 10: Advocate Debbie Prosser (November 2
Page 11 and 12: Chairman’s StatementContinued low
Page 13 and 14: Director General’s ReportOverview
Page 15 and 16: Supervision of individualsAll syste
Page 17 and 18: John HarrisDirector GeneralFUNDSOFF
Page 19 and 20: International Regulatory StandardsI
Page 21 and 22: The Commission continually looks at
Page 23 and 24: Total Examinations 2012Division The
Page 25 and 26: Enforcement case statisticsPercenta
Page 27 and 28: ResourcesOne of the aims of the Com
Page 29 and 30: The Board is satisfied that its com
Page 31 and 32: The members of the Audit Committee
Page 33 and 34: Financial StatementsIntroductionFee
Page 35 and 36: INDEPENDENT AUDITORS’ REPORT TO T
Page 37: Balance Sheet as at 31 December 201
Page 41 and 42: Notes to the financial statements f
Page 43 and 44: Notes to the financial statements f
Page 45 and 46: Statistical AnnexeCompaniesRegistry
Page 47 and 48: FundsCIFs & COBO Funds - Analysis b
Page 49 and 50: BankingBanks and Bank Deposits - £
Page 51 and 52: Assets of BanksTotals and sub-total
Page 53 and 54: Key trends and profitability of Ban
Page 56: www.jerseyfsc.org

Annual Report 2012 - the Jersey Financial Services Commission

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