FINANCIAL REPORT AND ACCOUNTS 2011 - States Assembly

INTRODUCTION TO THE ACCOUNTSEXPLANATION OF THE CONTENTS OF THE ACCOUNTS6.2 Explanation of the contents of the AccountsThe main statements included in the accounts are explained below.Consolidated Operating Cost StatementThis statement provides an informative analysis of the States’ income and expenditure, highlighting incomeraised by the States of Jersey, such as taxation and States expenditure on social benefits, staff costs, grantsand subsidies and other expenditure.It encompasses all the entities that comprise the States of Jersey, and income and expenditure are shownnet of amounts resulting from charges within the group.Consolidated Statement of Total Recognised Gains and LossesThis statement provides a summary of the States financial gains and losses regardless of whether or notthey were shown in the Operating Cost Statement. This includes the surplus for the year (from the OperatingCost Statement), as well as other unrealised gains and losses, such as those resulting from the revaluation ofFixed Assets, Investments or Pension Liabilities.Consolidated Balance SheetThe Balance Sheet provides a snapshot of the States of Jersey’s financial position as at 31 December 2011.It sets out what the States owns, what the States owes and what is owed to the States at that point in time.The figures shown exclude any amounts due between entities included in the States of Jersey Group.The three statements above are prepared in accordance with the Jersey Financial Reporting Manual (whichinterprets GAAP for the States of Jersey), and are therefore prepared on an ‘accruals’ basis, whereby incomeand expenditure are matched to the period to which they relate, not the period in which a movement of cashoccurs.Cash Flow StatementThe Cash Flow Statement summarises the actual movements in cash balances that have occurred in the year.NotesThe accounts also include a set of notes that provide further analysis of the figures contained within the mainstatements.64